{"id":912653,"date":"2026-11-10T18:20:08","date_gmt":"2026-11-10T18:20:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/912653\/"},"modified":"2026-11-10T18:20:08","modified_gmt":"2026-11-10T18:20:08","slug":"trading-firm-ceo-investing-1bn-in-ai-suggests-an-entire-class-of-market-maker-will-be-wiped-out","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/912653\/","title":{"rendered":"Trading firm CEO investing $1bn in AI suggests an entire class of market maker will be wiped out"},"content":{"rendered":"

Major electronic trading<\/a> firms like Jane Street<\/a> and HRT<\/a> have been investing billions of dollars into their AI infrastructure. The market making space is much larger than just the tier-one firms<\/a> though, and not everyone can afford to buy tens of thousands of GPUs. <\/a>The CEO of one trading firm investing heavily in AI infrastructure thinks that many of these trading firms are doomed to fail in the long term.<\/p>\n

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Evgeny Gaevoy, CEO of Wintermute, spoke today at the Digital Asset Summit in London about how the “middle tier” of market making “has been less and less successful” in recent years. AI is accelerating this; he said that many of the mid-tier trading firms “can’t afford to participate in an arms race on the latency side<\/a> and they definitely can’t participate on the AI side.” The largest trading firms earn tens of billions in net trading revenue, so the billions they’re spending on AI are “peanuts for them in the grand scheme of things.” Mid-tier firms also lack the deep market specialization of the smaller, lower-tier firms who are more likely to thrive in newer markets like equity-linked digital assets; Gaevoy said that market is becoming increasingly competitive, “especially on the latency side.”<\/p>\n

Gaevoy said that Wintermute has 160 employees… which would put it in that mid-tier space. The difference is that Wintermute has “both the capital to invest and a lot of room to grow.” The firm made its name in crypto, but Bloomberg<\/a> reported in August that Wintermute is branching out into equities, commodities and FX while investing up to $1bn into its low-latency and AI infrastructure.\u00a0<\/p>\n

The chances of new tier-one firms emerging are low. Gaevoy said “it might be possible if a bunch of small players team up to combine into something big.” If you’re building a new trading firm in 2026, he suggests you need to be content with your ceiling being “10\/20 people making $1m a head per year.”<\/p>\n

Gaevoy also said that Wintermute is competing for a very different type of trader to the major firms; graduates working in a tier-one firm “want an established, safe [and] controlled environment.<\/a>” Wintermute is instead “targeting people who can take risks,” and Gaevoy believes the $1bn investment puts the firm in a “pretty sweet spot” to be able to hire them. It’s willing to pay those people a lot of money; Wintermute’s most recent UK accounts via Companies House (for 2024) show that it paid 82 employees an average of ~$1m.<\/p>\n

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