Nvidia Shares Blockbuster Outlook that Prompts Bitcoin Miners to Target AI
Nvidia, a chip manufacturer, released a remarkably positive financial forecast, resulting in a spike in its stock prices. The chipmaker enjoys surging demand for hardware that AI applications such as ChatGPT require for their operations. It’s a notable event for Wall Street, signaling the increasing worldwide interest in AI. Further, the trend also points to Bitcoin miners exploring other fields of computing to stay competitive unless Bitcoin’s value sees another bull run.
Applied Digital is one of the few miners that plan to diversify their data center into other areas of computing. Other peers, such as Hive Blockchain and Hut 8 Mining, have their eyes on similar targets. Applied Digital CEO Wes Cummins states that AI is looking to be a more profitable trade area than mining, although bitcoin’s price value may surge to counter profit rates. For most players in the mining industry, focusing on AI might not be the optimal decision yet. High-performance computing such as AI and cloud applications require a higher level of infrastructure than Bitcoin mining, which makes mining expertise insufficient. Firms may need to hire engineers and sales staff to handle the required projects, and upgrading sites to suit computing requirements.
“There are some miners who have always taken a more diverse approach to their business operation, with high-performance compute or edge-compute services, in addition to bitcoin mining. With the rapid growth of AI, these companies may accelerate the development of those business lines,” adds Juri Bulovic, Foundry Digital’s head of mining (an affiliate firm of CoinDesk owned by Digital Currency Group).
Meanwhile, Nvidia’s positive financial forecast has also boosted other crypto tokens linked to AI, including SingularityNET (AGIX), rendering (RNDR), and Fetch.ai (FET), among others. The AI cloud remains a competitive area, with technology infrastructure upgrades necessary to accommodate the constantly growing changes in AI. In conclusion, while most mining companies may not follow suit yet, they have noticed the trend towards AI computing and realized its potential. It is a reasonable consideration for miners aiming to transition to remain relevant in the computing industry’s dynamic landscape.
According to https://www.coindesk.com/business/2023/05/25/nvidias-blockbuster-outlook-reminds-bitcoin-miners-to-give-ai-a-look/
The material in this article is written on the basis of another article.