Tech
Hive Blockchain shifts focus to artificial intelligence and renames itself Hive Digital Technologies
Last Updated: July 13, 2023 9:33am EDT | 2 minute read
Major cryptocurrency mining company Hive Blockchain he renamed himself Hive Digital Technologies as the company shifts focus towards artificial intelligence.
In a Wednesday declarationThe Vancouver, Canada-based mining company said the removal of “blockchain” from its name was a deliberate choice to better reflect its evolving focus on revenue opportunities in graphics processing units (GPUs) and cloud computing.
The company plans to leverage its large fleet of GPUs and its mission to advance advances in artificial intelligence to support the growth of the new Web3 ecosystem.
“As we expand our GPU Cloud business, we need a strategy that better reflects both aspects of our business. We build infrastructure for emerging digital technology, not just blockchain, and we intend to use our large fleet of GPUs to grow a cloud hosting business,” Hive CEO Aydin Kilic said in a statement.
“We believe that artificial intelligence and machine learning will drive significant demand for GPU computing in the future.”
As part of this new direction, Hive plans to utilize its fleet of 38,000 vehicles Nvidia GPU to provide small and medium-sized businesses with an efficient alternative to major cloud providers.
Hive’s decision to shift its focus to artificial intelligence is based on the growing demand for high-performance computing power.
The rise of AI models like ChatGPT has led to an increase in demand for high-end GPUs and related cloud services.
As a result, the company sees an opportunity to repurpose a portion of its existing cryptography-oriented GPUs for AI and adjacent applications such as computer vision and generative graphics design.
However, the transition from mining cryptocurrencies to providing computing power for artificial intelligence comes with its challenges. Data centers are typically configured differently for these distinct purposes, making the transition more complex.
Bitpro Consulting estimates that only 5% to 15% of existing cryptography-oriented GPUs can be repurposed for AI and related applications, according to study Bloomberg report.
Bitcoin miners face challenges despite recent rally
This strategic shift by Hive comes at a time when Bitcoin (BTC) Miners are facing numerous obstacles, despite recent price increases.
Rising energy costs, increased competition and stricter regulations have impacted the stock prices of Bitcoin mining companies.
Furthermore, Bitcoin miners would face more challenges with the upcoming halving, which will see the reward for Bitcoin mining halved.
“Almost half of miners will suffer due to less efficient and higher cost mining operations,” said Jaran Mellerud, cryptocurrency analyst at Hashrate Index.
Another blow to the crypto mining industry, Bitcoin miners in Texas had to suspend operations last month, after a heat wave and resulting surge in electricity prices put pressure on the state’s power grid.