Bitcoin Miners Eye AI Applications as Nvidias Stock Skyrockets

Bitcoin Miners Eye AI Applications as Nvidias Stock Skyrockets


Bitcoin miners may be enticed to diversify into AI applications following Nvidia’s positive financial outlook and increased demand for AI hardware, but the transition may not be straightforward due to infrastructure and staffing requirements, according to industry experts.

Several Bitcoin miners can potentially find non-mining Artificial Intelligence (AI) applications as well tantalizing to pass up.

Nvidia (NVDA) gave an incredibly rosy financial forecast as the chipmaker advantages from surging demand for hardware to power the artificial intelligence (AI) revolution ushered in by the likes of ChatGPT. It was the talk of Wall Street on Thursday as Nvidia’s stock price soared.

For Bitcoin (BTC) (BTC) miners, it’s a reminder that they already have the expertise and data-center space to join in and run Artificial Intelligence (AI) applications. Whether they’ll dive in remains to be seen.

“The overwhelmingly positive market reaction” to Nvidia’s news “will incentivize more mining corporations to follow suit making announcements of their own and allocating more of their power capacity to other forms of compute,” stated Ethan Vera, chief operating officer at mining services company Luxor Technologies.

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Vera noted the Wednesday notice that Applied Digital (APLD) is working with data center design company Supermicro (SMCI) on its Artificial Intelligence (AI) cloud offering.

Applied Digital is one of a handful of miners that have had their eyes on diversifying their data center space into other areas of computing for a time, along with peers Hut 8 Mining (HUT) and Hive Blockchain Tech (HIVE). Miners will see better margins in Artificial Intelligence (AI) than mining, stated Applied Digital CEO Wes Cummins – at least before another bull run in the price of bitcoin.

Nonetheless, the transition can potentially not be a straight line. High-performance computing such as Artificial Intelligence (AI) and cloud applications “requires a different level of infrastructure build” than Bitcoin (BTC) mining, Vera stated. Corporations will have to hire engineers to strategy their sites differently and sales staff to sign up clients, he said.

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“It’s not a straightforward process for a miner to repurpose their mines for Artificial Intelligence (AI) compute – latency, compliance, cooling, environmental factors (humidity, dust) and power redundancy all must be factored in when upgrading a site,” stated Erin Dermer, Hut 8’s senior vice president of communications and culture, echoing Vera.

Despite the fact that most miners are not likely to repurpose their facilities for Artificial Intelligence (AI), “there are some miners who have always had a more diverse approach to their business operation, with high-performance compute or edge-compute services, in addition to Bitcoin (BTC) mining. With the rapid growth of Artificial Intelligence (AI), these corporations may accelerate the development of those business lines,” stated Juri Bulovic, head of mining at Foundry Digital (which, like CoinDesk, is owned by Digital currency Group).

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In the meantime, Nvidia’s forecast is lifting AI-linked cryptocurrency crypto tokens, including SingularityNET (AGIX), which climbed about 13 percent on Thursday. Fetch.ai (FET) and Render (RNDR) are up greater than 5 percent in the past 24 hours, reports by CoinGecko data.

UPDATE (May 25, 2023, 20:24 UTC): Adds quote from Foundry Digital’s Juri Bulovic.

Nick Baker and Aoyon Ashraf.

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