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    Bitcoin Mining Companies Explore Expansion into AI and High-Performance Computing Amid Energy Challenges

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    Bitcoin mining firms are seeking growth via expansion into artificial intelligence (AI) and high-performance computing data centers, but such diversification comes with challenges related to managing power usage, Nazar Khan of mining firm TeraWulf said. Unlike miners, which can adjust energy usage depending on grid power availability, AI and computing centers require constant power levels. Utilities struggle to meet these needs and additional sources like gas are needed during outages. The constant power requirement also makes the centers less flexible in terms of energy balancing, while the financial costs are significantly higher than for Bitcoin mining facilities.

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    Bitcoin mining companies are branching out into artificial intelligence and high-performance computing data centers to help grow their businesses. But according to Nazar Khan, the main tech guy at TeraWulf (which is a big Bitcoin mining firm), managing power usage is super important for these types of facilities.

    Khan told folks at Cointelegraph that Bitcoin miners are great for managing power because they can change how much energy they use every 10 minutes, depending on if there’s too much or not enough power in the grid.

    But, it’s not the same case with AI and high-performance computing where they need consistent power, shooting up to 400-500 megawatts. Plus, these centres also rely on extras like gas generators if there’s a power outage.

    Khan also pointed out that many utility providers can’t handle the huge power need from AI and those high-performance computers. He explained that companies which plan well for their power needs will succeed, while those that simply want lots of power may not grow as they expect.

    He also thinks that high-performance computing centres won’t be as flexible as Bitcoin miners when it comes to balancing energy resources, but they should get better in time.

    According to Khan, building and running a Bitcoin mining facility costs around $500 per kilowatt hour. Compare this to the whopping $5000-$8000 per kilowatt hour needed for AI or high-performance computing.

    Philip Harvey, the boss at Sabre56, also points out this difference and says while it sounds like a good idea for mining firms to venture into AI or high-performance computing, it’s not an easy shift.

    So to keep up with the huge power needs, tech firms are now leaning toward nuclear power. Google for instance, has partnered with Kairos, a nuclear engineering company, to build a small nuclear reactor by 2030.

    Microsoft too has moved in this direction and made a deal to get a massive 835 megawatts of power by 2028 to run its AI projects.

    Earlier, President-elect Donald Trump suggested that the US should focus more on mining and data centers to stay competitive — a hint that his administration would emphasize this issue.

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