The surge in demand for GPUs driven by the artificial intelligence (AI) industry is prompting crypto miners to repurpose their data centers to cater to the needs of AI applications.

According to a recent report by Bloomberg, the unprecedented demand for data center and GPU resources from the AI sector is creating new opportunities for crypto mining companies. These firms are converting their existing infrastructures to capitalize on the growing demand from AI companies.

AI Industry Fuels Demand for Computing Power

The AI boom has led to a scarcity of industry-powering equipment and resources, including GPUs and the electricity needed to power them. With new data center facilities quickly being leased, approximately 83% of the capacity is already claimed by AI companies and cloud-service providers, according to a report by commercial real-estate firm CBRE Group.

To address the growing demand for data-center space, many companies are turning to crypto-mining firms, which possess the necessary infrastructure and are seeking more profitable uses for their properties.

Core Scientific's Partnership with CoreWeave

One notable collaboration is between Core Scientific and AI startup CoreWeave, expected to generate approximately $3.5 billion in revenue over 12 years. Core Scientific CEO Adam Sullivan highlighted the opportunity to convert existing infrastructure into AI facilities, catering to clients requiring large GPU arrays for AI applications.

Core Scientific has identified about 500 megawatts of capacity available for conversion, potentially making it the largest GPU installment dedicated to AI globally. This capacity could power hundreds of thousands of homes for a year.