· blockchain · 2 min read

Some crypto miners, like Hive Blockchain and Hut 8 Mining, are repurposing their GPU-based equipment to power high-performance computing services for AI clients

When the Ethereum blockchain moved away from using a technique for verifying transactions known as proof of work last September, crypto market demand for the specialized processors that performed these calculations disappeared virtually overnight. Companies that used and hosted GPUs, or graphics processing units, saw a key part of their once-booming business vanish against an increasingly difficult backdrop for crypto. But now mining infrastructure companies like Hive Blockchain and Hut 8 Mining are finding opportunities to repurpose their GPU-based equipment for another industry on the precipice of a possible boom: artificial intelligence.

This article discusses how some crypto miners are finding new uses for their GPUs in the AI industry after Ethereum switched to a more energy-efficient consensus mechanism. It explains how GPUs can benefit both crypto mining and AI training, and how the miners are offering their GPUs as a service to AI users who need high-performance computing power at a lower cost than cloud providers.

Some crypto miners are repurposing their GPUs for AI applications. GPUs are specialized processors that can perform complex calculations faster than CPUs, and they are widely used for both crypto mining and AI training. However, when Ethereum, the second-largest cryptocurrency by market cap, switched to a more energy-efficient consensus mechanism last year, the demand for GPUs for mining dropped significantly. This left many mining companies with excess inventory and idle capacity. Instead of selling or scrapping their GPUs, some of them decided to explore new opportunities in the AI industry, which is expected to grow rapidly in the coming years. They are offering their GPUs as a service to AI developers and researchers who need high-performance computing power at a lower cost than cloud providers. This is a win-win situation for both parties, as the miners can generate revenue from their underutilized assets, and the AI users can access more affordable and flexible computing resources.

Key takeaways

  • Some crypto miners are repurposing their GPUs for AI applications after Ethereum moved away from proof of work.
  • GPUs are specialized processors that can perform complex calculations faster than CPUs, and they are widely used for both crypto mining and AI training.
  • The miners are offering their GPUs as a service to AI developers and researchers who need high-performance computing power at a lower cost than cloud providers.

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