Crypto Mining Giants Hut 8 and Hive Blockchain Pivot to AI

In a twist of events, leading crypto mining firms, Hut 8 and Hive Blockchain, have begun repurposing part of their cryptocurrency farms into artificial intelligence (AI) centers, resulting in surging profits. This move comes in the wake of the 2022 cryptocurrency downturn and the merger of Ethereum, which shifted away from traditional crypto mining methods, Gearrice reported.

The switch to AI has emerged as a lifeline for these crypto farms, which were grappling with potential bankruptcy. AI, much like cryptocurrency mining, demands tremendous processing power harnessed through hundreds of GPUs functioning in unison, making cryptocurrency farms an apt fit.

Bloomberg reported that Hut 8 witnessed an 11% rise in its revenue in 2022, due to the partial conversion of its cryptocurrency farms into AI processing centers. Similarly, Hive Blockchain is projecting a tenfold increase in its revenue by 2024, and twentyfold by 2025, attributing this promising outlook to their shift to AI.

This transition, however, is not without its challenges. AI operations require specialized AI chips, such as NVIDIA’s A100 and H100, instead of the gaming GPUs used in crypto mining, making the conversion impossible for all farms. Setting up an AI server also necessitates software installation and ongoing maintenance, demanding additional investment in personnel and infrastructural changes.

This pivot to AI, despite its complexities, could potentially offer a new lease of life for large crypto mining companies. While it signifies a departure from traditional crypto mining, this move is fueling optimism, with crypto farms turning into burgeoning AI hubs.