Hudson River Trading, one of Wall Street's largest market makers, is doubling down on AI technology according to a new podcast episode featuring Iain Dunning, the firm's AI head. This follow-up conversation, recorded at Bloomberg's live event in New York, examines how HRT has advanced its AI capabilities over the past seven months since their initial discussion on algorithmic trading strategies.

The episode explores practical challenges facing quantitative trading firms, including memory pricing and computational bottlenecks that impact algorithmic performance. Listeners also get insight into how much HRT employees spend on computational tokens, revealing the operational costs behind high-frequency trading operations in today's competitive markets.

Most intriguing is HRT's consideration of developing its own specialized chips, a move that could significantly alter the firm's competitive position. This strategic shift would allow HRT to optimize its trading infrastructure beyond what commercially available solutions provide, potentially lowering latency and improving execution speeds in the hyper-competitive market making space where microseconds matter.