AI, Mining News: GPU Gold Rush: Why Bitcoin Miners Are Powering AI’s Expansion

Core Insights - Core Scientific has transitioned from bitcoin mining to hosting AI data centers, signing a $3.5 billion deal to secure a more stable revenue stream [1] - Bitcoin miners, including Core, Hut 8, and TeraWulf, are replacing ASIC machines with GPU clusters to capitalize on the rapid growth of AI and the declining profitability of crypto mining [2] Industry Dynamics - Bitcoin mining is energy-intensive, with energy costs being the largest expense; miners previously enjoyed margins up to 90% during the 2021 bull run, but are now facing thin margins due to increased hashrate and energy prices [3] - The need for affordable power has led miners to diversify their revenue sources, investing in low-cost energy solutions like hydroelectric and stranded natural gas [4][5] Strategic Shift - AI and cloud computing firms are attracted to the existing mining infrastructure, which is already equipped with high-power environments suitable for GPU-based AI processing [6] - Miners are retrofitting their operations to support AI, utilizing their established cooling systems and energy contracts to serve the needs of companies like OpenAI and Google [7]