Nvidia (NVDA) Reminds Bitcoin (BTC) Miners to Give ChatGPT-like AI a Look

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Nvidia (NVDA) has given a wildly optimistic financial forecast as the chipmaker takes advantage of growing hardware demand to fuel the artificial intelligence (AI) revolution ushered in by ChatGPT. It was the talk of Wall Street on Thursday as Nvidia’s stock price soared.

For bitcoin (BTC) miners, this is a reminder that they already have the expertise and data center space to participate and run AI applications. It remains to be seen whether they will dive.

“The overwhelmingly positive market reaction” to Nvidia’s news will “prompt more mining companies to follow suit by making their own announcements and allocating more of their power capacity to other forms of computing,” said Ethan Vera, COO of mining services company Luxor. Technologies.

Vera noted Wednesday’s announcement that Applied Digital (APLD) is working with data center design firm Supermicro (SMCI) on its AI cloud offering.

Applied Digital is one of a handful of miners who have been considering diversifying their data center space into other areas of computing for some time, along with peers Hut 8 Mining (HUT) and Hive Blockchain (HIVE ). Miners will see better margins in AI than in mining, Applied Digital CEO Wes Cummins said, at least ahead of another bitcoin price hike.

However, the transition might not be a straight line. High-performance computing such as AI and cloud applications “requires a different level of infrastructure building” than bitcoin mining, Vera said. Companies will need to hire engineers to plan their sites differently and sales staff to recruit customers, he said.

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

Even though most miners are unlikely to reallocate their facilities to AI, “some miners have always taken a more diverse approach to their business operations, with high-performance computing or edge computing services, in addition to bitcoin mining. With the rapid growth of AI, these companies can accelerate the development of these industries,” said Juri Bulovic, chief mining officer at Foundry Digital (which, like CoinDesk, is owned to Digital Currency Group).

Meanwhile, Nvidias forecasts boost AI-related crypto tokens, including SingularityNET (AGIX), which climbed around 13% on Thursday. Fetch.ai (FET) and Render (RNDR) are up more than 5% in the past 24 hours, according to data from CoinGecko.

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

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