Citadel Securities, a prominent high-frequency trading firm, has told startup founders and investors it is looking to license software from artificial intelligence startups working on large-language models or to buy stakes in them, according to two people with knowledge of the conversations.
The discussions highlight how interest in the latest wave of AI advances has spread to Wall Street, where firms have long battled to eke out gains by making price predictions using vast quantities of data. Citadel Securities hopes to use knowledge gained from relationships with AI startups to potentially develop new trading strategies, one of these people said. LLMs, which power ChatGPT and its ilk, can allow developers to build software that analyzes a wide range of data, including corporate financial statements.
