Hut 8 completes pivot to AI market with GPU-as-a-Service launch

Mila September 26, 2024

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Key Takeaways

Hut 8 Corp. deployed 1,000 NVIDIA H100 GPUs for its new GPU-as-a-service vertical.
The company’s compute layer now includes AI compute, Bitcoin mining, and cloud services.

Bitcoin (BTC) mining firm Hut 8 has initiated its GPU-as-a-service vertical, generating revenue from an AI cloud developer’s inaugural GPU cluster. The cluster in a tier-three data center in Chicago features multiple Hewlett Packard Enterprise Cray supercomputers powered by 1,000 NVIDIA H100 GPUs.

Hut 8 collaborated with HPE and AdvizeX to design, configure, and commission the cluster, operated under its subsidiary, Highrise AI. The company secured a five-year agreement with the AI cloud developer, including fixed infrastructure payments and revenue-sharing.

“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,” Asher Genoot, CEO of Hut 8, stated.

The new vertical aims to maximize returns on its power assets and digital infrastructure by scaling its compute layer across energy-intensive technologies.

“We are thrilled to support the launch of Hut 8’s GPU-as-a-service offering, in collaboration with our trusted partner AdvizeX, through the delivery of world-class high-performance computing solutions,” Jerome Boucher, Vice President and General Manager, HPC and AI Solutions, North America of HPE, added.

AI and cloud computing as lifelines for miners

The cost to mine a BTC nearly doubled in one year, leaping from $14,907 to $26,232, according to Hut 8’s report about its Q2 activities.

Notably, this increase was experienced by other Bitcoin mining firms, as TeraWulf reported a rise of 243.2% in energy costs alone.

Thus, the move from Hut 8 to start a vertical dedicated to AI and cloud computing doesn’t come as surprising. Moreover, it is aligned with the efforts of other mining firms.

Core Scientific announced in June a partnership to deliver 70 megawatts to CoreWeave’s Nvidia GPUs. Additionally, Reuters reported that 20% of the power capacity from Bitcoin miners is expected to pivot to AI by the end of 2027.

Yet, this pivot is not easy. Zach Bradford, CEO of CleanSpark, told Reuters that it takes up to three years to build a sophisticated data centers, adding that most Bitcoin miners claiming they will pivot to AI “don’t really know what they are getting into.”