The massive image: As the preliminary hype surrounding expertise tendencies similar to cryptocurrency mining, web3, blockchain, NFTs, and the Metaverse has subsided, many people and organizations concerned appear to be redirecting their consideration in the direction of generative AI. This shift can also be affecting {hardware} initially supposed for blockchain and mining, which may doubtlessly repurpose its processing energy for AI functions.
Two massive cryptomining corporations, Hut 8 and Hive Blockchain, have redirected their mining GPU infrastructure towards high-performance computing (HPC), which incorporates AI workloads. This transfer may assist recoup investments on GPUs the businesses initially bought for cryptocurrency mining, a market that dramatically shifted final yr.
Miners purchased so many PC graphics playing cards throughout previous crypto booms to mine Ethereum that it drove up GPU costs, irritating shoppers who needed to make use of them for taking part in video games. Ethereum was significantly well-suited to GPU-based mining till the cryptocurrency transitioned its backend late final yr. The subsequent crypto winter compelled miners to return or resell used GPUs, though Bitcoin has recovered considerably.
However, GPUs are additionally one of many major engines powering generative AI like ChatGPT (together with massive numbers of contractors incomes $15 an hour).
Nvidia believes AI is a significantly better use of its playing cards than crypto. The involvement of tech giants like Microsoft and Google additional legitimizes AI as a substitute path for corporations holding onto GPU-based crypto farms.
Hut 8’s HPC enterprise generated roughly $16.9 million final yr, accounting for about 11 % of its general income. This improve is attributed to shifting processing energy to AI purchasers. Similarly, Hive goals to develop its HPC earnings from $1 million to $10 million in 2024 and $20 million by 2025. The income may contribute to recovering the $66 million it paid Nvidia for graphics playing cards in 2021.
However, most crypto operators will be unable to depend on AI as a lifeline. Miner brokerage service Bitpro Consulting states that solely 5 to fifteen % of mining GPUs can transition to HPC.
Moreover, AI functions demand substantial quantities of {hardware} that necessitate a big upkeep workers. Attempting this shift additionally places potential HPC corporations in competitors with Microsoft Azure and Amazon Web Services, which already provide mature HPC infrastructure to AI purchasers. Therefore, solely the most important mining corporations are prone to make the transition. Ordinary GPU consumers in all probability will not expertise an enormous inflow of AI startups driving up costs anytime quickly.
