As bitcoin (BTC) block reward mining profits decrease, miners are turning to artificial intelligence (AI) to boost profitability. Hut 8 (NASDAQ: HUT), a leading United States miner, has recently launched a GPU-as-a-Service for AI clients in an effort to capitalize on this trend.
Hut 8 has unveiled its new service, with the first GPU cluster already operational and generating revenue. Located in Chicago and managed by Hut 8’s subsidiary Highrise AI, the cluster consists of 1,000 Nvidia (NASDAQ: NVDA) H100 GPUs powering Hewlett Packard Enterprise Cray supercomputers.
CEO Asher Genoot expressed optimism about the venture, stating, “We believe that an AI compute business will drive financial growth, revenue diversification, and long-term value creation.” This move marks Hut 8’s transition to AI, joining other major players in the industry seeking alternative revenue streams amidst increasing competition in BTC mining.
With the global GPU market projected to skyrocket from $38 billion in 2022 to $201 billion in 2032, the demand for GPUs in AI data centers has surged. This has prompted many companies to shift their focus towards AI services, with Core Scientific and Bitdeer among the notable examples.
According to Reuters, approximately 20% of current BTC mining capacity is expected to transition to AI by 2027 as mining costs escalate. Companies like CoreWeave have successfully pivoted to AI, leveraging their GPU resources to power large language models for global clients and attracting significant investments.
Integrating AI with enterprise blockchain systems is crucial for ensuring data security and integrity. By utilizing blockchain technology, AI can maintain data quality and ownership while guaranteeing data immutability. This synergy between AI and blockchain is poised to revolutionize the industry.
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