Top Bitcoin Mining Firms Bitmain, Ebang, and Canaan Are Shifting Focus to the Development of AI Chips
- Major Bitcoin mining firms are focusing on the development of high-powered AI equipment to stay ahead of the curve and bring in new revenue streams.
- This follows the high volatility experienced in mining revenues and costs across the first half of 2020, a report by TokenInsight Analysis states.
The Bitcoin mining industry is facing an overhaul in mining equipment production as three of the top mining pools – Bitmain, Ebang, and Canaan – all aim at introducing AI chips in the future. Since the launch of Bitcoin, miners have pocketed over $14 billion in rewards, but this revenue is slowly diminishing as new, higher-powered mining rigs outperform older machines.
Bitcoin mining firms are aiming to further the technological progress in chip research and development by introducing AI or Artificial Intelligence.
Across the first half of 2020, newer and more powerful machines, including Bitmain's S19 and S19 Pro, WhatsMiner M30 series, and Canaan's A1146 Pro and A1166 Pro have launched, improving the power consumption and optimization to earn sufficient rewards. According to the report, older machines are seeing a rise in costs of mining BTC since the halving in May hence lowering their profitability as and “putting their revenue at stake.”
In a bid to beat the ever-advancing mining rigs, Samsung and Taiwan’s Semiconductor Manufacturing Company (TSMC) are testing 3nm chips with a mass production plan in 2022. However, these chips are already reaching the physical limits, and the latter plans to launch 2nm chips in 2024.
Bitmain, Ebang, and Canaan are, however, focusing on the next level – AI-powered chips. According to the report, AI chips offer a broader and faster prospect than its predecessors, ensuring “a high degree of overlap with mining machine chips in terms of design and manufacturing.” Additionally, these chips will offer high calculation speeds, in the millions per second, and “can also be quickly transplanted to the field of AI chips.”
As such, BTC mining firms will be fighting to lead the manufacturing of these AI chips to provide mining manufacturers with a new revenue stream as we head into the next halving.