14 votes

Why so many bitcoin mining companies are pivoting to AI

11 comments

  1. [2]
    kru
    Link
    Spoiler: The halving made bitcoin rewards much less profitable for large datacenter mining operations. So they're looking to get stable income by becoming GPU hosts for AI.

    Spoiler: The halving made bitcoin rewards much less profitable for large datacenter mining operations. So they're looking to get stable income by becoming GPU hosts for AI.

    19 votes
    1. chocobean
      Link Parent
      As gold panning returns diminish at one site, prospectors switch to a different site. Levi's/nVidia does a happy jig

      As gold panning returns diminish at one site, prospectors switch to a different site. Levi's/nVidia does a happy jig

      16 votes
  2. [2]
    blivet
    Link
    Opportunists moving from one harmful fad to the next.

    Opportunists moving from one harmful fad to the next.

    19 votes
    1. ChingShih
      Link Parent
      Literally. Marathon Digital (NYSE: $MARA) used to be a bunch of patent troll lawyers, then in 2021 they switched over to Bitcoin mining. I fully expect companies like them to shift over to AI...

      Literally. Marathon Digital (NYSE: $MARA) used to be a bunch of patent troll lawyers, then in 2021 they switched over to Bitcoin mining. I fully expect companies like them to shift over to AI because they've already built cryptomining facilities adjacent to power plants, so all the infrastructure is in place. Doesn't get any more opportunistic than that.

      5 votes
  3. agentsquirrel
    Link
    I'll take burning CPU cycles and energy for AI over cryptocurrency any day. While AI can be used for useless and nefarious purposes, the energy burnt for cryptocurrency was merely to generate a...

    I'll take burning CPU cycles and energy for AI over cryptocurrency any day. While AI can be used for useless and nefarious purposes, the energy burnt for cryptocurrency was merely to generate a bunch of numbers and ultimately has no meaningful purpose.

    6 votes
  4. [3]
    skybrian
    Link
    Assuming we regard Bitcoin as being about as secure as it was before, that means its energy efficiency (Bitcoins secured per watt) has improved by 100%. The gains from increased efficiency will be...

    Assuming we regard Bitcoin as being about as secure as it was before, that means its energy efficiency (Bitcoins secured per watt) has improved by 100%. The gains from increased efficiency will be deployed elsewhere.

    More of that, please. Too bad the schedule is fixed in stone.

    4 votes
    1. [2]
      stu2b50
      Link Parent
      Well, the article says "Bitcoin" miners as a simplification, but they're almost certainly not actual Bitcoin miners, but other cryptocurrencies. Bitcoin has long since been too difficult for GPU...

      Well, the article says "Bitcoin" miners as a simplification, but they're almost certainly not actual Bitcoin miners, but other cryptocurrencies. Bitcoin has long since been too difficult for GPU miners to make profit; instead, it's dominated by ASICs. Those ASICs would be useless for machine learning tasks, as they as specialized specifically for Bitcoin's hashing function.

      4 votes
      1. skybrian
        Link Parent
        My guess is that they'd sell off the ASICs and install other computers? Often the building, with its cooling, security, and power and network hookups, is a pretty good investment in itself....

        My guess is that they'd sell off the ASICs and install other computers? Often the building, with its cooling, security, and power and network hookups, is a pretty good investment in itself. Particularly when there's a waiting list for power hookups.

        Also, it's my understanding that Bitcoin ASICs depreciate pretty rapidly because they keep coming out with better ones.

        1 vote
  5. zenen
    Link
    Good, I'd much rather the energy flak be directed towards people who are profiting from deepfake porn videos

    Good, I'd much rather the energy flak be directed towards people who are profiting from deepfake porn videos

  6. Moah
    Link
    Grifters gonna grift

    Grifters gonna grift