Crypto miners are being forced to restructure their data centers in order to fulfill the demands of the artificial intelligence (AI) industry due to the spike in GPU demand.
In light of AI's unparalleled need for GPU and data center resources, crypto mining companies are reportedly discovering new prospects in the AI space by transforming their current infrastructures, according to a recent article by Bloomberg.
AI Industry Drives Demand for Processing Power
The AI boom has resulted in an unparalleled scarcity of supplies and equipment needed to power industry, as well as the electricity needed to power these resources.
According to a March survey by commercial real estate firm CBRE Group, new facilities under construction are being leased at a quick pace, with around 83% of the capacity already claimed by AI businesses and cloud-service providers.
Many businesses are turning to cryptocurrency mining companies, who already have the equipment needed and are looking for more lucrative uses for their assets, to meet the increased need for data-center space.
At a conference hosted by Nvidia, Core Scientific Chief Operating Officer Matt Brown shared his experience of "just getting cold-called, or getting text messages from industry peers that are looking for capacity because they are finding that it is just not there."
According to Brown, "everyone is just rushing to figure out where they can find capacity in the next 12 months, and it is getting exponentially more difficult."
Core Scientific and CoreWeave's Collaboration
The announcement by Core Scientific and AI startup CoreWeave of a partnership that is anticipated to bring in around $3.5 billion in revenue over a 12-year period brought attention to this trend of collaboration.
CEO of Core Scientific Adam Sullivan said, "We see the opportunity in AI today as one where we can convert existing infrastructure we own to host clients who are looking to install very large arrays of GPUs for their clients who are ultimately AI clients."
Approximately 500 megawatts of capacity, which might be the largest GPU installation devoted to AI globally, have been identified by the business for conversion to AI facilities. This amount of power is enough to run hundreds of thousands of houses for a full year.
June 2024, Cryptoniteuae