You know, the chatter about an “AI war” isn’t just hype. Nations are genuinely vying for a lead. And here’s a twist: the unlikely strategists showing the way might just be Bitcoin miners.
- Bitcoin miners are emerging as potential strategists in the AI race, with North America learning from the crypto world’s infrastructure-building approach. This involves constructing large-scale projects near sustainable energy sources.
- The convergence of Bitcoin mining and AI data centers is attracting attention from policymakers and investors, as both require significant power resources. This has led to innovative collaborations and diversification strategies.
- The future of AI and national competitiveness may depend on securing and generating sufficient power, with Bitcoin miners potentially leading the way in this critical area. They are already experts in large-scale energy management.
That’s the view from serial entrepreneur Kevin O’Leary. He suggests North America is learning some very important lessons from the crypto world. These lessons involve building huge infrastructure projects close to sustainable energy sources.
The Power Question
This unexpected overlap between Bitcoin mining and AI data center needs has caught the eye of Washington, D.C. policymakers. It’s also driving institutional investors to find the best situations for their money, O’Leary explained.
Consider New York state. It has plenty of hydro power, especially off the grid near Niagara Falls. But it initially lacked the right policy to move forward. Now, O’Leary says, New York is “trying to get its mojo back” when it comes to Bitcoin mining and AI.
“I think some states, like New York and others, have figured out these are high-paying jobs at the cutting edge of two new regulated industries, AI and bitcoin mining and crypto,” he said. “And they feel that somehow they’ve missed out.”
These days, more attractive options for such operations are in places like West Virginia, North Dakota, Mississippi, and Texas. O’Leary, for his part, supports Bitzero. That’s a green energy Bitcoin mining and data center company with operations in North America, Norway, and Finland.
He also points to Alberta, Canada, as a good example. “They have an abundance of low-cost, stranded natural gas,” he noted. It makes sense, doesn’t it? You go where the power is cheap and plentiful.
Miners’ Strategic Shift
The Bitcoin miners weren’t just sitting around waiting for AI to call. They were forced to diversify their business. Why? The recent Bitcoin halving event cut mining rewards in half. This squeezed their profit margins in an already very competitive market.
Companies like Core Scientific have brought this intersection of mining and AI into the mainstream. Other miners, such as Hive Digital and Hut 8, have shifted large amounts of their data centers into AI. This helps them spread out their revenue streams.
The marriage of Bitcoin mining and hosting AI computing in data centers became an easy way to achieve this diversification. Miners already tap into the massive amounts of electricity needed to support the rapidly increasing data center demands of AI. Think about it: a single ChatGPT query requires 2.9 watt-hours of electricity. A simple Google search, by comparison, uses only 0.3 watt-hours. That’s according to the International Energy Agency.
Mega-wattage Bitcoin mining operations are typically located close to abundant energy supplies. They often have industrial-scale power generation connectivity infrastructure already built and running. This makes retrofitting Bitcoin mines with AI-powering graphics processing units (GPUs) a potentially attractive proposition. Though, it’s worth noting, AI data centers do require much more infrastructure overall.
A National Contest
O’Leary sounds optimistic when he talks to policymakers about powering the AI boom. He mentioned U.S. Interior Secretary Doug Burgum, Oklahoma Governor Kevin Stitt, and Alberta Premier Danielle Smith. O’Leary, who is Canadian, said Smith caught the attention of the Bitcoin mining and AI data center industry when she shared that Alberta has 200 trillion cubic feet of gas at its fingertips.
This is why a tariff war between the U.S. and Canada is “foolish,” O’Leary said. He pointed out that China is preparing for the “AI wars” by setting up new coal-burning electrical plants on a weekly basis. It’s a stark comparison, isn’t it?
“We’re not just talking about bitcoin mining, this is about the competitiveness of nations,” O’Leary stated. It’s a bigger game than just crypto or AI alone.
“We’ve got to bring all this back home, but our biggest problem is power,” he explained. “There’s no more power on the domestic grid. Nada. And so, if you want a gigawatt in any state, forget about it. You have to figure out a way to build that power yourself from natural gas or nuclear power or something else.”
It seems the future of AI, and perhaps national standing, hinges on who can find and generate the most power. And it’s Bitcoin miners, of all people, who might just be showing the world how to do it.
