nDimensional is applying the transformational AI techniques made famous by ChatGPT to optimize energy market bidding. nDimensional’s GenAI-based bid optimizer is being used by a New York quant fund to optimize daily arbitrage trades between day ahead and real time electricity markets.

A generative pretrained transformer (GPT) model was trained on vast quantities of data to learn the complex dynamics and nuances that impact day-ahead and real-time market pricing across all nodes in the Midwest Independent System Operator (MISO) market. This was combined with reinforcement Learning (RL), which directs the GPT model to make bid decisions that take advantage of the price spread between day ahead and real-time markets.

Although the fund had been successfully using AI for more than a decade, the new GPT-based approach has delivered substantially more lucrative results.