NVIDIA (NVDA) has shown very rosy financial forecasts as chip makers benefit from the surge in hardware demand fueling the artificial intelligence (AI) revolution spearheaded by ChatGPT and others. The story made headlines on Wall Street on Thursday as Nvidia’s stock surged.
For Bitcoin (BTC) miners, this is a reminder that they already have the expertise and data center space to participate and run AI applications. I don’t know yet if they will jump in.
The “overwhelmingly positive market reaction” to Nvidia’s news “will encourage more mining companies to follow suit, make their own announcements, and allocate more power capacity to other forms of computing.” probably,” said Ethan Vera, chief operating officer of mining services firm Luxor. technology.
Vera referred to Wednesday’s announcement that Applied Digital (APLD) is working with data center design firm Supermicro (SMCI) on AI cloud products.
Applied Digital, along with peers Hut 8 Mining (HUT) and Hive Blockchain (HIVE), is one of the few miners to have looked to diversify its data center space into other areas of computing for some time. One company. Applied Digital CEO Wes Cummins said miners will likely be more profitable with AI than mining, at least before the Bitcoin price rises again.
However, that transition may not be linear. High-performance computing, such as AI and cloud applications, “requires a different level of infrastructure building” than bitcoin mining, Vera said. He said companies would have to hire engineers to change the plans for the site and hire sales staff to register customers.
“For miners, repurposing mines for AI computing is not an easy process. You have to consider all the redundancies,” said Hut’s Erin Dahmer. Eight’s senior vice presidents of communications and culture agree with Bella.
While most miners are unlikely to reuse their facilities for AI, “there will always be more diversification to their business operations, using high-performance computing services and edge computing services in addition to bitcoin mining.” With the rapid growth of AI, these companies may accelerate the development of those business areas,” said Mining of Foundry Digital (which, like CoinDesk, is part of the Digital Currency Group). Director Juli Burovic said.
Meanwhile, NVIDIA’s forecast is for AI-linked crypto tokens, such as SingularityNET (AGIX), which rose about 13% on Thursday. CoinGecko data shows Fetch.ai (FET) and Render (RNDR) are up more than 5% in the last 24 hours.
Update (May 25, 2023, 20:24 UTC): Add a quote from Foundry Digital’s Juri Bulovic.
