Bitcoin miners sink millions into AI businesses, seeking billions in return

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Bitcoin miners sink millions into AI businesses, seeking billions in return
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Bitcoin miner Core Scientific is expanding its AI business through a $3.5 billion partnership with cloud company CoreWeave.

The deal with cloud provider CoreWeave is expected to add revenue of over $3.5 billion over 12 years.

Sullivan jumped into the role of CEO while the company was still in the throes of bankruptcy, which resulted from the collapse of bitcoin in 2022. Since then, the former investment banker has settled debts with angry lenders and further beefed up the company's non-bitcoin business as it reentered the public market.

"The introduction of AI activities leads to increased depreciation and amortization, which can enhance gross profit margins," Butterfill said. Genoot added that the company expects to begin generating revenue in the second half of the year at an annual rate of about $20 million.had 251 servers actively generating revenue from its first AI contract as of the end of April, and the company said it earned about $4.1 million of revenue from the operation that month.

The rigs used to mine bitcoin are called Application-Specific Integrated Circuits . They're built specifically for crypto mining and can't be used to do other things. Sullivan said the retrofit is manageable because the company owns and controls all of its data center infrastructure.

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