Core

Artificial Intelligence

Bitcoin

<ul>
 <li><strong>Bitcoin miners are increasingly turning to artificial intelligence (AI) as mining profitability dwindles.</strong></li>
 <li><strong>Core Scientific has adapted its mining infrastructure for HPC and AI, signaling a bright future for the industry.</strong></li>
</ul>
<p>The world of <a href="https://www.ethnews.com/texas-bitcoin-mining-giant-rhodium-enterprises-declares-bankruptcy-amid-economic-pressures/" rel="noopener noreferrer nofollow">Bitcoin mining</a> is undergoing a significant transformation. Historically celebrated as a lucrative endeavor, mining is no longer as profitable due to escalating operational costs and diminishing returns. This economic shift is pushing miners toward alternative technologies, with artificial intelligence (AI) emerging as a prominent option.</p>
<p>Recent trends within the <a href="https://www.ethnews.com/cryptocurrency-update-key-developments-across-bitcoin-ethereum-and-other-major-coins/" rel="noopener noreferrer nofollow">Bitcoin </a>network indicate a paradoxical situation: although the network’s hash rate— a measure of the processing power dedicated to mining— has reached historic highs, demonstrating a robust commitment to network security, the financial gains from mining have notably declined. According to data from Jefferies Bank, revenue from exahash, a key profitability indicator for miners, dropped almost 12% last August.</p>
<p>The decline in mining profits can be attributed to increased competition among miners and the reduced rewards following <a href="https://www.ethnews.com/experts-predict-300x-gains-for-these-cryptos-as-bitcoin-breaks-150k/" rel="noopener noreferrer nofollow">Bitcoin</a>‘s latest halving event in April. These factors compel miners to seek out more sustainable and financially viable business models.</p>
<h2 id="ai-a-lucrative-alternative">AI – A Lucrative Alternative</h2>
<p>Several leading companies, including Core Scientific, have started to redirect their computational resources toward AI technologies. This shift is not merely a reaction to the crises in <a href="https://www.ethnews.com/bitcoin-bulls-alert-mining-data-predicts-massive-rally-get-ready/" rel="noopener noreferrer nofollow">mining</a> profitability but also a strategic move to repurpose existing infrastructures. For example, Core Scientific, after emerging from bankruptcy, has successfully pivoted to leveraging its robust infrastructure for high-performance computing (HPC) and AI applications.</p>
<p>This strategic realignment has captured Wall Street’s interest, significantly enhancing the company’s market valuation.</p>
<p>The transition from <a href="https://www.ethnews.com/bitcoin-mining-hashrate-approaches-record-levels-as-prices-rally/" rel="noopener noreferrer nofollow">Bitcoin mining</a> to AI involves a comprehensive transformation of infrastructure. Data centers, once dedicated solely to mining, are now evolving into versatile hubs capable of meeting the expansive demands of the technology sector. These centers’ capacity to handle vast amounts of data renders them ideal partners for AI initiatives.</p>
<p>The potential of these data centers is immense. Adam Sullivan, CEO of Core Scientific, suggests that this transition marks the beginning of a new era, with <a href="https://www.ethnews.com/why-bitcoin-btc-investors-are-watching-this-token-after-ethereums-eth-1000-surge/" rel="noopener noreferrer nofollow">Bitcoin</a> miners potentially leading the transformation of the data center market. With a current capacity of 700 megawatts for AI and high-performance computing, Core Scientific is positioned to become one of the top three data center companies in the United States within the next few years.</p>
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<p>The post <a href="https://www.ethnews.com/from-bitcoin-to-ai-how-miners-are-pivoting-to-artificial-intelligence-amid-falling-profits/" rel="noopener noreferrer nofollow">From Bitcoin to AI: How Miners Are Pivoting to Artificial Intelligence Amid Falling Profits</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.</p>

From Bitcoin to AI: How Miners Are Pivoting to Artificial Intelligence Amid Falling Profits

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