TL;DR
- Hut 8 Corp., a Bitcoin mining company, has launched its new GPU-as-a-Service offering, starting to generate revenue with a GPU cluster.
- This cluster, which utilizes 1,000 NVIDIA H100 GPUs and Hewlett Packard Enterprise Cray supercomputers, operates under Hut 8’s subsidiary Highrise AI.
- The expansion into the artificial intelligence sector responds to a 243.2% increase in energy costs in Bitcoin mining.
Hut 8 Corp., a recognized operator of energy infrastructure and one of North America’s largest Bitcoin miners, has carried out the launch of its new GPU-as-a-Service offering.
This initiative has begun generating revenue through the implementation of a GPU cluster for an artificial intelligence cloud developer, marking a strategic shift in the direction of the company. The cluster is located in a tier-three data center in Chicago and is composed of Hewlett Packard Enterprise (HPE) Cray supercomputers powered by 1,000 NVIDIA H100 GPUs.
Our GPU-as-a-Service vertical is officially live following the deployment of our first cluster.
“The launch of our GPU-as-a-service vertical further diversifies our compute layer, which now spans AI compute, Bitcoin mining, and traditional cloud services. Consistent with our… pic.twitter.com/jaC6Hu3WG2
— Hut 8 (@Hut8Corp) September 26, 2024
The collaboration with HPE and AdvizeX was crucial in the configuration and commissioning of this cluster, which now operates under Hut 8’s subsidiary, Highrise AI. The agreement established with the AI cloud developer lasts five years and includes not only fixed payments for infrastructure but also a revenue-sharing model, providing the mining company with a solid and sustainable financial base for its new offering.
The Bitcoin Challenge: Energy Costs Rose by 243%
According to Asher Genoot, CEO of Hut 8, this launch aims to diversify the company’s computing layer, which now encompasses AI computing, BTC mining, and cloud services. On the other hand, the company is committed to disciplined capital allocation. The expansion into the artificial intelligence sector is a response to the rising costs of Bitcoin mining, which have seen a substantial increase over the past year, forcing many companies in the sector to reconsider their operational strategies.
The cost of Bitcoin mining has nearly doubled in a year. Reports indicate a 243.2% increase in energy costs, making Hut 8’s decision to pivot towards artificial intelligence unsurprising. Other companies in the industry, such as Core Scientific, have also begun exploring partnerships with AI developers, anticipating that a portion of Bitcoin miners’ energy capacity will be redirected to this area in the coming years.
However, industry experts warn that building advanced data centers can take up to three years, and some Bitcoin miners may underestimate the complexity of this transition. Nevertheless, Hut 8 aims to capitalize on the opportunities created between cryptocurrency mining and cloud computing
