(TheConservativeTimes.org) – Bitcoin miner Core Scientific has been moving out of mining and into artificial intelligence. For the last five years, this company has been making a quiet shift toward AI, which requires a lot of power for training the systems and handling the workload.
Core Scientific announced a twelve-year deal with CoreWeave, a cloud provider, to provide infrastructure for cases like machine learning. They said the agreement would add more than three billion dollars of revenue over the course of the contract.
CoreWeave is backed by Nvidia and is a business that rents out graphics processing units which are a key piece in training new AI models. Core Scientific’s shares raised thirty percent following this and CoreWeave has been valued at nineteen billion dollars following fundraising last month.
Core Scientific CEO Adam Sullivan said, “The best way to think about Bitcoin mining facilities is that we are essentially power shells to the data center industry.”
Sullivan jumped into his role as CEO when the company was still dealing with bankruptcy, resulting in the collapse of Bitcoin a couple of years ago. The company has since settled debts and continued to focus on its non-bitcoin businesses.
James Butterfill, head of research at digital asset firm CoinShares, highlighted why miners facilities would fit AI systems, saying, “Bitcoin miners, often stationed in energy-secure and energy-intensive data centers, find these facilities ideal for AI operations as well.”
Butterfill continued, “The introduction of AI activities leads to increased depreciation and amortization, which can enhance gross profit margins.”
Core Scientific is not the only Bitcoin company that’s dipping its toes into artificial intelligence as we’ve seen similar agreements with Hut 8 and Hive.
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