The shift towards AI is a trend among bitcoin miners, as AI operations require immense power but are more profitable. However, the transition is not simple as high-performance computing data center requirements are different. Core Scientific plans to convert 500 megawatts of its bitcoin mining infrastructure to high-performance computing data centers over the next three to four years. The company's expanded arrangement with CoreWeave is expected to produce annual revenue of $290 million.
Key takeaways:
- Bitcoin miner Core Scientific has announced a 12-year deal with cloud provider CoreWeave to provide infrastructure for AI use cases, a move expected to generate over $3.5 billion in revenue over the course of the contract.
- Core Scientific and other miners are diversifying their revenue streams by retrofitting their facilities to meet the needs of the AI market, which requires immense amounts of power for training and running AI models.
- Transitioning to AI operations is not straightforward as it requires different infrastructure and machines, with high-performance computing (HPC) data center requirements being different from those of bitcoin mining.
- Over the next three to four years, Core Scientific plans to convert 500 megawatts of its bitcoin mining infrastructure across the country to HPC data centers.