Why These Bitcoin Miners Are Becoming Summer’s Hot AI Stocks
What is CoreWeave's annual payment to Core Scientific?
CoreWeave will pay Core Scientific $290 million annually over 12 years for the Austin-based bitcoin miner's data centers to host AI-related computing hardware. The deal is projected to bring Core Scientific a total of $3.5 billion in revenue during the contract period.
How much new energy can support U.S. households annually?
The new energy potentially available from bitcoin miners for AI projects could support about 3.4 million households annually, according to JPMorgan research. This energy capacity could be crucial in meeting the increasing demand for computational power driven by AI applications.
What are the challenges in repurposing miner's electric capacity for AI?
Repurposing miners' electric capacity for AI presents several challenges. Firstly, the power capacity needs to be accessible and easily transferable, which may not always be the case. Secondly, the facilities housing the mining equipment may not have the necessary infrastructure, such as fiber-optic cabling, to support AI operations. Lastly, competition with established tech companies and the high capital expenditures required to build AI data centers pose significant challenges for miners looking to enter the AI market.