Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

A Bitcoin Miner Promised To Help A Texas Town. It Went Bankrupt Instead. Now, It’s Pivoting To AI

Dec 09, 2024 - forbes.com
Core Scientific, once a major bitcoin miner, went bankrupt after a failed crypto mining venture in Denton, Texas, which doubled the city's energy footprint. Emerging from bankruptcy, the company has pivoted to AI cloud computing, securing a $3.5 billion contract with CoreWeave to host Nvidia GPUs. Denton has approved an expansion of Core Scientific's power capacity by 100 MW for its AI supercomputer, expected to generate significant tax revenue and create jobs. Despite initial skepticism due to the project's secrecy and environmental concerns, the city supports the development, which aligns with its renewable energy goals.

The transition from crypto mining to AI computing involves updating existing data centers to support GPU servers. Core Scientific's bankruptcy initially reduced Denton's anticipated revenue, but the new AI-focused project is projected to bring in $194 million in property tax revenue over the next decade. The company will lease additional land for an AI computing campus, and while it will not immediately participate in demand response programs, Denton maintains the ability to manage the facility's power supply during grid stress. The city remains committed to offsetting its energy footprint through renewable energy contracts.

Key takeaways:

  • Core Scientific, initially a bitcoin mining company, went bankrupt but has reemerged as a cloud computing company for AI startups, transforming its Denton facility into a large AI supercomputer.
  • The company has secured a $3.5 billion contract with CoreWeave to provide data center space for Nvidia GPUs, contributing to a significant increase in market cap for similar bitcoin miners.
  • Denton's local government has approved an increase in Core Scientific's power capacity, and the company plans a $6.1 billion property investment expected to generate substantial tax revenue for the city.
  • Despite environmental concerns, Denton maintains its commitment to offsetting its energy footprint through renewable energy contracts, while Core Scientific will reassess its participation in demand response programs.
View Full Article

Comments (0)

Be the first to comment!