Core

Value

Northern

The explosive growth in artificial intelligence has created an unprecedented demand for data-center capacity and the necessary <a href="https://ultramining.com/news/en/kaspa-takes-the-lead-in-gpu-mining-sets-sights-on-transforming-pow-landscape/" rel="noopener noreferrer nofollow">GPU</a> chips, turning crypto mining companies into hot targets. This trend is exemplified by the recent developments at <a href="https://ultramining.com/news/en/bitcoin-mining-giant-core-scientific-prepares-for-post-bankruptcy-comeback/" rel="noopener noreferrer nofollow">Core Scientific</a> Inc., a major player in the crypto mining industry, now attracting significant interest from AI companies, according to <a href="https://www.bloomberg.com/news/articles/2024-06-05/ai-s-insatiable-data-center-demand-makes-crypto-miners-targets" rel="noopener noreferrer nofollow">Bloomberg</a>.
At a recent Nvidia Corp. conference, Matt Brown, an executive at Core Scientific, found himself inundated with requests from tech giants and AI startups alike, all seeking additional data-center capacity. The soaring demand is evident, with 83% of new data-center capacity under construction already leased, driven primarily by AI firms and cloud-service providers.
Core Scientific’s strategic move includes a partnership with AI startup CoreWeave, projected to generate $3.5 billion over 12 years. Additionally, CoreWeave has offered to buy Core Scientific for about $1 billion. CEO Adam Sullivan of Core Scientific highlighted that they have identified 500 megawatts of data-center capacity that can be converted to support AI operations, marking one of the largest such installations globally.
The shift in focus from crypto mining to AI is not unique to Core Scientific. Other companies, such as Northern Data AG and Bit Digital Inc., have invested heavily in Nvidia’s high-demand chips, aiming to repurpose their existing infrastructure for AI applications. Northern Data, for instance, plans to deploy 20,000 Nvidia H100 chips by the end of the summer, becoming a major computing power provider for AI companies in Europe.
This pivot is timely, given the recent Bitcoin blockchain software update, which has halved mining rewards, making the conversion of mining facilities to AI data centers financially attractive. Morgan Stanley estimates that securing a power source for data centers ahead of competitors can lead to significant premiums on power prices.
As the AI boom continues, the crypto mining sector is witnessing a transformation. Companies with existing data-center infrastructure and GPU expertise are well-positioned to capitalize on the surging demand from AI firms. This evolution is reshaping the landscape, making data centers a focal point of interest for both Silicon Valley and Wall Street.&nbsp;

AI Demand Drives Crypto Miners to Transform Data Centers, Boosting Market Value

Ultramining_Eng

Other articles published on Jun 6, 2024

Mastercard Users Can Now Buy XRP, SHIB and Other Coins on Binance Once Again

IO.NET (IO) Launches on Binance Launchpool as 55th Project

Jim Cramer Discusses SEC and Ripple Case

European Central Bank Implements First Rate Cut in Five Years!

Analysts Predict Ethereum and TokenFi Movements

BlockDAG Launches Lunar Keynote, Attracts Investors from Dogeverse, and Achieves 1000% Surge in P...

Join our free newsletter for daily crypto updates!