Cryptocurrency miners are gradually switching to artificial intelligence

The rise of generative AI has caused a sharp increase in demand for computing power, forcing companies that used to mine cryptocurrencies to switch to it, The Guardian reports.

Generative AI tools such as ChatGPT require thousands and tens of thousands of GPUs to process large amounts of data. Nvidia has compared GPUs to rare earth metals for AI, saying they are «fundamental» to its development today.

However, all this hardware requires a significant amount of energy to operate. According to the French energy company Schneider Electric, the energy consumption of AI training is equivalent to that of a small country. This is how bitcoin started in the past.

In August, Institutional Investor reported that Applied Sciences had renamed itself as a bitcoin miner hosting company called Applied Bitcoin in April 2022, but by November 2022, perhaps sensing a shift in investment, it renamed itself Applied Digital, with a focus on AI.

Overall, the AI boom is creating a new landscape for tech companies. Those that can adapt to changing market demands and keep up with environmental issues will have a good chance of success.