bill001g Bitcoin if you immediately sell the coin you can quickly determine if you are profitable day to day related to the power consumption and overhead costs. AI is a complete gamble especially if they try to do AI themselves rather than just sell capacity to all other risk takers who are trying to sell AI services. If they could convert the mining machine directly to AI usage might be a option if they are not making much mining coins. Reading the article it seems they are talking about buying a bunch of new AI servers. All they have already is ability to run these servers unlike others who are shopping around for electrical power. I wonder how long they feel the break even point is on the servers. In worse case they want to have all the servers paid for before the AI bubble bursts. If they still own money on just the servers they likely are going out of business also. All going to depend on if the one or two companies that find a way to be profitable selling AI can absorb all the data centers and these nvidia AI racks used by the failed AI implementations. Reply
ET3D I'm glad to see people moving from a get rich scheme to something that's actually useful. Cypto needs to die. Reply
ET3D hotaru251 said: "ai" has nothing for the average joe. Are you kidding? Pretty much everyone from highschool kids to professionals are using AI these days. It's the biggest revolution since the search engine. Reply
bill001g ET3D said: Are you kidding? Pretty much everyone from highschool kids to professionals are using AI these days. It's the biggest revolution since the search engine. Only way highschool kids are using it if it is for free. Once the AI companies start to charge enough to recover their power costs they will not be able to allow it for free. How many people are going to pay a monthly fee that likely constantly increases. Reply
ejolson I find it reassuring that all the energy infrastructure built for the crypto-mines can be viewed as reserve capacity ready for something more useful. Reply
call101010 How do you profit from AI ? rent the servers to others or make your own platform ? This is far resources demanding than simply bit coining. Reply
ejolson call101010 said: How do you profit from AI ? rent the servers to others or make your own platform ? This is far resources demanding than simply bit coining. The obvious strategy is gather a bunch of investors together, have some nice dinners with wine and cheese, then land a contract with Anthropic or Deepseek, buy the new hardware specified in the contract and collect the revenue. Aside from the wine and cheese, the reason this plan works is they've already got a datacenter provisioned with over 300 megawatts and the competition can't get enough electricity. Reply
Zaranthos ET3D said: I'm glad to see people moving from a get rich scheme to something that's actually useful. Cypto needs to die. Agreed. Using the most expensive computing hardware along with more power than the average person would ever use to create a fake intangible asset with no actual value is even worse than the AI bubble. At least AI has some use and potential for benefit. Reply
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/cryptomining/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/cryptomining/major-bitcoin-mining-firm-pivoting-to-ai-plans-to-fully-abandon-crypto-mining-by-2027-bitfarm-to-leverage-341-megawatt-capacity-for-ai-following-usd46-million-q3-loss#main
- https://www.tomshardware.com
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- OpenAI’s colossal AI data center targets would consume as much electricity as entire nation of India — 250GW target would require 30 million GPUs annually to en
- How to Unlock Accelerated AI Storage Performance With RDMA for S3-Compatible Storage
- AMD's FSR Redstone officially debuts in Call of Duty: Black Ops 7 — AMD's answer to Nvidia's Ray Reconstruction
- How to Unlock Accelerated AI Storage Performance With RDMA for S3-Compatible Storage
Informational only. No financial advice. Do your own research.