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Hut 8 offers 1,000 Nvidia GPUs for AI developers

GrafaGrafa2024/09/27 00:25
By:Liezl Gambe

Hut 8, a cryptocurrency mining and computing infrastructure company, has launched a GPU-as-a-service program aimed at artificial intelligence developers.

The announcement was made on September 26 and includes a partnership with AdvizeX.

This initiative provides engineers access to several Hewlett Packard Enterprise supercomputers powered by a cluster of 1,000 Nvidia H100 GPUs.

For context, Microsoft’s OpenAI supercomputer consisted of 10,000 GPUs as of 2020.

Originally founded in 2017 with a focus on Bitcoin (CRYPTO:BTC) mining, Hut 8 has since shifted its business model to include cloud and AI services.

The technology used in Bitcoin mining has significant overlap with that of AI development, with GPUs being essential to both fields.

The Bitcoin mining sector has faced challenges since the April 2024 halving, which reduced the block reward from 6.25 BTC to 3.125 BTC.

Following the halving, Bitcoin's network hashrate and difficulty have reached record highs, creating revenue pressures for mining facilities.

Despite these difficulties, Hut 8’s pivot to AI services is reportedly generating revenue from its GPU-as-a-service program.

“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,” said Asher Genoot, CEO of Hut 8.

He added, “Consistent with our commitment to disciplined capital allocation, we believe a thoughtfully structured AI compute business will be accretive both financially and strategically and drive topline growth, revenue diversification, and long-term value creation.”

GPUs, initially designed for complex graphics processing, are now utilised for cryptocurrency mining and AI training.

The demand for popular GPUs like Nvidia’s H100 has been rising, with many companies vying to acquire them.

Hut 8's GPU-as-a-service program offers an accessible alternative for developers and startups who cannot afford to build or operate their own GPU clusters.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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