SF Compute Builds Exchange for Physical Delivery of GPU Compute Capacity

SF Compute, founded by Evan Conrad, operates a marketplace where buyers and sellers trade future GPU compute time, functioning somewhat like a commodities exchange. The company's central challenge is ensuring that compute bought actually matches the specified hardware, network, and performance requirements, since GPU capacity is not a standardized product. Conrad explained that the firm deliberately stays neutral by not owning large amounts of compute, arguing that hyperscalers and GPU makers cannot run such a market without undermining trust. The interview also describes a price curve with discounts for near-term capacity and identifies large arbitrage gaps between purchase costs and inference revenue. Conrad argued that physical delivery must be established before cash-settled derivatives are introduced, to avoid manipulation and basis risk.