(Bloomberg) — Bitcoin miner Core Scientific is transforming part of its infrastructure to power the artificial intelligence company’s high-performance computing operations.
The Austin, Texas-based company has installed 16 MW of data center capacity for AI startup CoreWeave and plans to convert more data centers in the future. The move comes amid slumping Bitcoin mining revenues and rising demand for data centers that host graphics processing units that power AI applications.
Since late April, when the blockchain code was updated, Bitcoin miners' main income has been cut in half. Such an update, known as a halving, would ultimately reduce the amount of Bitcoin given to miners who verify transaction data on the network every four years to maintain a hard cap of 21 million tokens and prevent inflation in the digital currency. Reduce by 50%. Last month's halving, the fourth since 2012, saw daily Bitcoin production fall from 900 to 450 Bitcoins, resulting in miners' annual revenue dropping from 900 to 450 Bitcoins, based on the original cryptocurrency's price at the time. The loss was estimated at $10 billion.
But some large miners, such as Core Scientific, are converting some of their assets to provide data center services to AI companies that similarly rely on energy-intensive equipment. They are looking to increase revenue and take advantage of the AI boom.
“We are in regular discussions with our customers in this area and expect to further develop this part of our business this year,” Core Scientific CEO Adam Sullivan said on Wednesday's earnings call. We plan to strengthen it.” “We aim to be a market leader and provide digital infrastructure for high-performance computing.”
Sullivan said it will take three to four years to fully convert the 500 megawatt Bitcoin mining infrastructure to host high-performance computing, and that the company expects to start generating revenue as it adds customers. He said there was.
The company's first quarter sales were $179.3 million, an increase of $58.6 million from the same period last year. This was primarily driven by the rise in Bitcoin prices earlier this year and the increase in computing power generated from its facilities.