Bitcoin

<a href="https://ultramining.com/news/en/russias-bitcoin-gold-rush-mining-machine-influx-outpaces-rest-of-the-world/" rel="noopener noreferrer nofollow">Bitcoin miners</a> are testing the waters of artificial intelligence, but not without skepticism. Recently, companies like HIVE and <a href="https://ultramining.com/news/en/hut-8s-q2-2023-a-bitcoin-mining-marvel/" rel="noopener noreferrer nofollow">Hut 8</a> have publicized their shift toward high-performance computing (HPC) and AI strategies. However, industry experts caution that this pivot might be more about marketing than a practical application of resources, according to <a href="https://www.forbes.com/sites/colinharper/2023/08/30/can-bitcoin-miners-do-ai-not-really/?sh=683f3497d96a&amp;utm_source=TWITTER&amp;utm_medium=social&amp;utm_content=11205493505&amp;utm_campaign=sprinklrForbesCrypto" rel="noopener noreferrer nofollow">forbes</a>. 
Most of these <a href="https://ultramining.com/news/en/blockstream-aims-for-bitcoin-profit-with-mining-rig-investment-ahead-of-2024-halving/" rel="noopener noreferrer nofollow">mining companies</a> have <a href="https://ultramining.com/news/en/jack-dorsey-dives-deeper-into-crypto-ventures-into-bitcoin-mining-hardware/" rel="noopener noreferrer nofollow">hardware</a> rendered obsolete by Ethereum's move to proof-of-stake. Some, like <a href="https://ultramining.com/news/en/hut-8s-q2-2023-a-bitcoin-mining-marvel/" rel="noopener noreferrer nofollow">Hut 8</a>, claim to have repurposed this computing power for HPC tasks. Yet, these tasks don't compare to the sophisticated computations required to train AI models. <a href="https://ultramining.com/news/en/hut-8s-q2-2023-a-bitcoin-mining-marvel/" rel="noopener noreferrer nofollow">Hut 8</a> managed to earn $4.5 million from HPC services in Q1 2023 and $4.3 million in Q2. On the other hand, a pilot program for HIVE only pulled in $200,000 in Q1. 
The costs involved in running an AI data center are staggering. Establishing such a facility would require 10 to 20 times the investment needed for a new Bitcoin mining site. Specifically, the power costs would be almost double, soaring as high as 15 cents per kilowatt/hour compared to the 5-8 cents that miners currently pay. Moreover, these centers need an electrical infrastructure capable of handling at least 1 terabyte per second, far beyond the capabilities of typical mining farms. 
Therefore, despite the hype, it's unlikely that these <a href="https://ultramining.com/news/en/russias-bitcoin-gold-rush-mining-machine-influx-outpaces-rest-of-the-world/" rel="noopener noreferrer nofollow">Bitcoin miners</a> can offer real AI services in the near term. Traditional <a href="https://ultramining.com/news/en/crypto-miners-shift-gears-ai-is-the-new-gold-rush/" rel="noopener noreferrer nofollow">data centers</a> are expensive and require more space, better cooling, and more powerful backup generators to ensure 99.99% uptime. Companies like Google, Amazon, and Microsoft already dominate this space, making it even harder for <a href="https://ultramining.com/news/en/russias-bitcoin-gold-rush-mining-machine-influx-outpaces-rest-of-the-world/" rel="noopener noreferrer nofollow">Bitcoin miners</a> to compete. 
While some companies like Applied Digital have seen their stock prices surge with the AI hype wave, caution is advised. So, while the market buzz suggests that miners are venturing into AI, investors and industry watchers should wait for the dust to settle. After all, not all that glitters is gold—or, in this case, artificial intelligence. 
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Bitcoin Miners Eye AI Applications, But Experts Urge Caution

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