cryptominers-hope-they’ll-discover-a-second-life-by-turning-their-mining-operations-into-ai-farms

Some large-scale crypto miners are searching for new methods to generate profits as demand for GPU-powered mining operations has considerably decreased over the past 12 months. Some are hoping to show that processing energy elsewhere: to assist prepare AI. 

In accordance with Bloomberg, some crypto mining firms have pivoted their enterprise in direction of high-performance computing (HPC) providers for purchasers working with AI. They usually’re doing fairly effectively with it: Hut 8 Mining, as an illustration, advised Bloomberg that its HPC enterprise had generated roughly $16.9 million from its AI purchasers. Hive BlockChain purchased $66 million value of GPUs from Nvidia for its HPC endeavors and is projected to make about $98 million in income by the top of 2024. 

Even Nvidia boss Jensen Huang predicts that AI fashions will turn out to be one million occasions extra highly effective throughout the subsequent decade and expects to see the rise of “AI factories worldwide” to satisfy the ever-growing workload calls for. And the quantities of cash on the desk are staggering: For instance, it prices OpenAI someplace between $700,000 to $1 million every day to function its AI chatbot, ChatGPT.

Nevertheless, changing a crypto-mining operation to high-performance computing for AI might be difficult and dear, as a result of it typically requires a big {hardware} improve. Nvidia’s H100 Tensor Core GPUs, made for AI deep studying duties, can value over $10,000 every

Discovering the money to finance these conversions could be an issue since a number of the largest crypto lenders wrestle to receives a commission from Bitcoin miners, typically getting caught with a great deal of ineffective mining rigs as a substitute of the particular cash they’re owed. This implies lenders won’t be so fast (or in a position) to dole out loans to miners keen to vary course. 

Some RTX 40-series GPUs, just like the RTX 4090, are able to performing critical AI duties, nevertheless it’s a comparatively small a part of the entire. Bitpro Consulting advised Bloomberg that simply 5% to fifteen% of present crypto mining GPUs may very well be retooled for AI since just some high-end GPUs are appropriate for AI work. 

Even when former crypto miners efficiently pivot in direction of AI deep studying operations, most AI purchasers are inclined to go for bigger knowledge providers suppliers like AWS or Microsoft Azure, which have the staffing, knowledge heart infrastructure, and assist to deal with the wants of their data-hungry AI know-how.