Bitcoin mining giant Hive has announced a name change and a major shift in focus towards artificial intelligence (AI). The company dropped the “Blockchain” part of its name, replacing it with “Digital Technologies” to reflect its new mission.

On July 12, Hive Digital Technologies revealed its new name and “strategic expansion to advance the future of artificial intelligence (AI).”

Nvidia GPUs to Power AI

Hive plans to leverage its existing fleet of Nvidia GPUs for “computational tasks at scale.”

Cloud computing engine aims to develop AI applications such as ChatGPT to “support the new Web3 ecosystem” He said.

The company plans to harness the potential of GPU cloud computing technology, which it said is a vital tool in the world of artificial intelligence, machine learning, and advanced data analysis.

The company has 38,000 Nvidia GPUs to do the job. In addition, it plans to expand into leasing GPU server clusters across markets. It will also continue to develop its new service, HIVE Cloud, which provides cost-effective solutions to compete with major commercial cloud service providers.

Aydin Kilic, President and CEO of Hive, explained that training AI tools like ChatGPT and Midjourney requires high-end GPU computing power.

“HIVE has purchased Nvidia GPUs with these features that exceed the computing requirements for Ethereum mining,” he added.

The company also announced a partnership with US technology company SuperMicro, to provide CPU computing power and storage that will complement the GPU fleet. The company has ordered servers from SuperMicro and expects delivery next month.

“We are building the infrastructure for emerging digital technologies, not just blockchain,” Kilic added.

“We believe that artificial intelligence and machine learning will drive the demand for GPU computing in the future.”

Mining and GPU ecosystem outlook

CEO Frank Holmes predicted that demand from GPU computing could increase the company’s annual revenue to more than $100 million.

Nvidia has certainly seen growth in revenue and stock prices this year, with NVDA prices up more than 200% since the start of 2023.

Bitcoin mining profitability or hash price has taken a hit recently due to high hash rates. The hash rate, measured in dollars per slicker per second per day, is currently $0.073.

It’s down about 7% since the beginning of the month and 15% since the same time last year.

The average network hash rate rose to a record high of 465 EH/s on July 8, but has fallen to 358 EH/s as of July 12, according to BitInfoCharts data.