Publicly traded cryptocurrency companies have shifted their focus from cryptocurrency mining (blockchain creation) to artificial intelligence (AI) due to declining profitability. These companies are now offering computing power from their data centers to the AI sector. Major mining firms are no longer limited to mining Bitcoin and other cryptocurrencies, but also wish to provide high-performance computing services in AI.
Brands in the Bitcoin mining industry have rebranded themselves to highlight their expanding businesses. Ethereum miners who used graphics processing units (GPUs) can now repurpose them for AI computing. The rapid growth of AI has created a new avenue for utilizing previously used GPUs. The shift to AI is seen as a natural evolution, especially after a challenging 2022 for the mining industry. Providing high-performance computing services to the AI industry could be more profitable than mining Bitcoin, according to a report by JPMorgan.
Miners are increasingly transitioning from Bitcoin mining to high-performance AI computing and exploring new locations for service provision. As a warning, Russia, with its surplus energy as well as all its various security risks, is becoming an attractive AI computing option. Seemingly, mining companies have an opportunity to improve their negative financial results. Not surprisingly, some of theses companies have experienced significant stock losses due to low Bitcoin prices and an increase in system and data hacking.
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