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

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Bitcoin (BTC) mining firm Hut 8 has pioneered its GPU-as-a-service vertical, generating revenue from an AI cloud developer’s inaugural GPU cluster. The cluster in a Tier 3 data center in Chicago has several Hewlett Packard Enterprise Cray supercomputers powered by 1,000 NVIDIA H100 GPUs.

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

“The launch of our GPU-as-a-service vertical further diversifies our compute layer, which now spans AI computing, Bitcoin mining and traditional cloud services,” said Hut 8 CEO Asher Genoot.

The new vertical aims to maximize the return on its energy assets and digital infrastructure by expanding its computing layer in energy-intensive technologies.

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

AI and cloud computing as lifelines for miners

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

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

Thus, the move from Hut 8 to start a vertical dedicated to AI and cloud computing is not that surprising. Moreover, it is aligned with the efforts of other mining companies.

Core Scientific announced in June a partnership to supply 70 megawatts for Nvidia’s CoreWeave GPUs. In addition, Reuters reported that 20% of Bitcoin mining power capacity is expected to convert to AI by the end of 2027.

However, this pivot is not easy. Zach Bradford, CEO of CleanSpark, told Reuters that it takes up to three years to build a sophisticated data center, adding that most Bitcoin miners who claim to switch to AI “don’t really know what they’re getting into.” .

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