In an exclusive interview on CNBC’s ‘Squawk Box’ recently, Jan Szilagyi, co-founder of Toggle AI, discussed the rapidly growing demand for computational power in artificial intelligence (AI) and its implications for the finance sector. Toggle AI leverages machine learning to turn data into actionable insights for investors, and Szilagyi shared his thoughts on the current and future state of AI technology.
Szilagyi began by explaining Toggle AI’s core offering.
“We built Toggle Terminal that is in use by a number of hedge funds. The key component of it is what we call a knowledge graph which is fed by generative AI models,” he said. This knowledge graph helps in understanding relationships within the data, such as those involving NVIDIA and interest rates, by using large amounts of controlled data.
He drew attention to the importance of using reliable data sources.
“We only gave it access to data that we know is high level of integrity. It doesn’t randomly pick it,” said Szilagyi. This careful curation of data ensures that the insights generated by the AI are trustworthy and actionable, avoiding the pitfalls of low-quality data.
Szilagyi pointed out that the current infrastructure supporting AI still has a long way to go.
“I look at NVIDIA and cloud computing and it feels like we’re trying to do streaming in the mid-1990s where the infrastructure wasn’t ready to take advantage of it,” he remarked, comparing the state of AI infrastructure to the early days of the internet and suggesting that while progress is being made, there is still significant room for development.
He also addressed the potential impact of AI on the trading landscape.
“The demand for compute will absolutely skyrocket,” Szilagyi predicted, noting that large financial institutions and hedge funds are likely to drive this demand. He likened the current adoption of AI technology to the early days of the Bloomberg Terminal, stating: “If you were the first person ever to get a Bloomberg Terminal, you felt you had an edge. The same thing will happen here.”
Toggle AI’s approach aims to democratize access to advanced trading tools, but Szilagyi acknowledged that this could initially create disparities.
“It will become natural to have it,” he said. “It is a great productivity booster. You will feel — it is like not having access to Google Search.” This analogy underscores the transformative potential of AI in finance, where access to advanced tools can significantly enhance productivity and decision-making.
