Leading Crypto Mining Company hive blockchain has renamed itself Hive Digital Technologies As the company shifts its focus to artificial intelligence.
on a wednesday statementThe Vancouver, Canada-based mining company said the removal of “blockchain” from its name was a deliberate choice to better reflect its evolving focus on revenue opportunities in graphics processing units (GPUs) and computing on the Internet. cloud.
The company intends to leverage its large fleet of GPUs and its mission to drive advancements in AI to support the growth of the new Web3 ecosystem.
“As we expand our GPU Cloud business, we require a strategy that better reflects both sides of our business. We build infrastructure for emerging digital technology, not just blockchain, and we intend to use our large fleet of GPUs to grow a cloud hosting business,” Hive CEO Aydin Kilic said in a statement.
“We believe that AI and machine learning will create significant demand for GPU computing in the future.”
As part of this new direction, Hive plans to utilize its strong fleet of 38,000 nvidia GPUs to provide small and medium businesses with an efficient alternative to major cloud service providers.
Hive’s decision to shift its focus to AI is based on the growing demand for high-performance computing power.
The rise of AI models like ChatGPT has led to an increase in demand for high-end GPUs and related cloud services.
As a result, the company sees an opportunity to repurpose a portion of its existing crypto-oriented GPUs for AI and adjacent applications such as computer vision and generative graphic design.
However, the transition from crypto mining to providing computing power for AI has its challenges. Data centers are typically configured differently for these different purposes, making the change more complex.
Bitpro Consulting estimates that only 5-15% of existing crypto-oriented GPUs can be reused for AI and related applications, according to a report. bloomberg report.
Bitcoin miners face difficulties despite recent rally
This strategic shift from Hive comes at a time when Bitcoin (BTC) miners face numerous hurdles, despite recent price hikes.
Rising energy costs, increased competition, and tighter regulations have affected the share prices of Bitcoin mining companies.
Also, Bitcoin miners will face more challenges with the upcoming halving, which will see the Bitcoin mining reward cut in half.
“Almost half of the miners will suffer as they have less efficient mining operations with higher costs,” said Jaran Mellerud, crypto mining analyst at Hashrate Index.
In another blow to the crypto mining industry, Bitcoin miners in Texas had to halt operations last month after a heat wave and subsequent spike in electricity prices put pressure on the state’s power grid.
