Semiconductor giant Nvidia has posted a very strong financial outlook, benefiting from a surge in demand for the hardware that powers ChatGPT and other AI revolutions. On the 25th, it attracted attention on Wall Street, and the stock price soared.
It should be noted that Bitcoin (BTC) miners already have the expertise and data centers needed to enter the AI space. But I don’t know if miners will get into AI.
The “overwhelmingly positive market response” to NVIDIA’s earnings forecast “will be an incentive for more mining companies to follow the move to allocate more capacity to other forms of computing,” said mining services firm Luxor. Technologies COO Ethan Vera said.
Vera referred to today’s announcement that Applied Digital has partnered with data center design firm Supermicro to provide an AI cloud.
Applied Digital and fellow mining companies Hut 8 Mining and Hive Blockchain were looking to diversify their data center space into other areas of computing. Miners see AI as more profitable than mining, said Applied Digital CEO Wes Cummins — at least until bitcoin prices rise again.
However, entering AI will not be easy. High-performance computing, such as AI and cloud applications, “requires a different level of infrastructure building” than bitcoin mining, Vera said. He also said he would have to hire engineers and sales staff to plan the new facility.
Erin Dermer, senior vice president of communications and culture at Hut 8, echoed Vera, saying, “It’s not easy for miners to convert their mining facilities for AI computing. “Latency, compliance, cooling, environmental factors (humidity, dust), power redundancy, etc. all need to be considered before the facility is refreshed.”
Although there are not many mining businesses that convert their facilities to AI, “mining businesses that are already developing their business with more diverse approaches such as high-performance computing and edge computing in addition to bitcoin mining” There are others, and with the rapid growth of AI, these companies may accelerate the development of those business lines,” said Juri Bulovic, head of mining at Foundry Digital.
On the other hand, NVIDIA’s earnings forecast increased AI-related crypto assets, including SingularityNET (AGIX), which rose about 13% on the 25th. CoinGecko data shows Fetch.ai (FET) and Render (RNDR) are up more than 5% in the last 24 hours.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Shutterstock
｜ Original: Nvidia’s Blockbuster Outlook Reminds Bitcoin Miners to Give AI a Look
