Hut 8 Leases GPU Power for AI Computing

The mining company Hut 8 has begun generating revenue by leasing its graphics processors to AI firms, according to The Block.

The new service, dubbed GPU-as-a-service, offers clients the computational power required for high-performance tasks such as artificial intelligence operations. 

Hut 8 has partnered with Hewlett Packard Enterprise and AdvizeX to develop and launch a new computing cluster, managed by its subsidiary Highrise AI. The five-year partnership includes fixed infrastructure payments and revenue sharing with an undisclosed cloud AI developer.

The GPU-as-a-service cluster is housed in a Chicago data center and comprises several HPE Cray supercomputers, consisting of 1,000 Nvidia H100 graphics processors.

“The launch of our GPU-as-a-service vertical further diversifies our computing segment, which now spans artificial intelligence, bitcoin mining, and traditional cloud services. […] A well-thought-out AI computing structure will contribute to both financial and strategic growth, revenue diversification, and the creation of long-term value,” commented Hut 8 CEO Asher Genut.

Earlier, Bernstein experts noted that miners are attractive partners for AI companies and will shift their resources to the neural network sector. 

The 12-year agreement between Core Scientific and AI company CoreWeave and Coatue Management’s $150 million investment in Hut 8 have been key catalysts for the sector’s development.

Artificial intelligence offers 17-25 times more revenue per kWh compared to bitcoin mining — $0.17-0.2 versus $3-5.