Bitcoin miners seek deals with AI companies to revive revenue

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They now hope to benefit from a surge in demand for powerful but scarce chips which are used in both crypto mining and AI processing.

| Bitcoin miners are rushing to sign deals with artificial intelligence developers in a bid to revive their flagging revenues by finding new customers for their vast data centres.

as they try to build more capable AI systems, and are increasingly doing deals to allow them to use miners’ chips or to put their own chips in miners’ data centres. AI companies require a large amount of energy and computing infrastructure, two things that bitcoin miners typically have access to. AI groups are betting that using miners’ high-performance computing data centres will be faster and cheaper than building their own.

Other big bitcoin miners are using some of their data or processing capacity for AI. US hedge fund Coatue Management, founded by “Tiger cub” fund manager Philippe Laffont, recently invested $US150 million into Hut 8 to help the bitcoin miner upgrade its infrastructure to meet AI companies’ needs. The mining company also recently created an AI division.

“We understood the halving was imminent, and we felt that with margins being compressed overnight by 50 per cent it doesn’t always make sense to run on the hope that bitcoin goes up, it’s just not a great business practice,” said Sam Tabar, chief executive of Bit Digital.

 

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