Kevin O’Leary: U.S. Must Learn From Bitcoin Miners to Win ‘AI Wars’

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interview. “Whether you’re talking about an AI data center or you’re talking about bitcoin mining. And now we are seeing that very often these projects are a bit of both.”A serendipitous overlap between bitcoin mining operations and AI data center requirements has become an area of focus for Washington, D.C. policymakers, and it’s driving institutional investors to swoop on the best situations, O’Leary said.For instance, New York state, which initially lacked the right policy to move forward despite its abundance of hydro power off the grid in Niagara Falls, is now “trying to get its mojo back” when it comes to bitcoin mining and AI, according to O’Leary.“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. And they feel that somehow they've missed out,” he said.These days, more desirable options are in places like West Virginia, North Dakota, Mississippi, and Texas, said O’Leary, who is a backer of Bitzero, a green energy bitcoin mining and data center company with operations in North America, Norway and Finland. “Alberta, Canada is a good example because they have an abundance of low-cost, stranded natural gas,” he said.The bitcoin miners were forced to diversify their business into AI and cloud computing as the recent halving has cut the mining rewards by half, squeezing their profit margin in an already super competitive market. Companies such as Core Scientific (CORZ) have brought the intersection of mining and AI into the mainstream, and other miners such as Hive Digital (HIVE) and Hut 8 (HUT) have pivoted large amounts of their data centers into AI to diversify their revenue.The marriage of bitcoin mining and hosting AI computing in data centers became an easy way to accomplish this diversification, as the miners are already tapping into the massive amount of electricity needed to support the rapidly increasing data center demands of AI. (A single ChatGPT query requires 2.9 watt-hours of electricity, compared with 0.3 watt-hours for a Google search, according to the International Energy Agency.)Mega-wattage bitcoin mining operations are typically situated close to abundant energy supplies with 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 AI data centers require much more infrastructure.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,270.50 -1.50 (-0.02%)Dow Futures44,490.00 -22.00 (-0.05%)Nasdaq Futures22,899.00 +2.25 (+0.01%)Russell 2000 Futures2,240.30 -4.80 (-0.21%)VIX16.81 -0.98 (-5.51%)Gold3,310.60 -6.30 (-0.19%)PortfolioSign in to access your portfolioSign inTop gainersQS QuantumScape Corporation 8.18 +1.17 (+16.69%)PGNY Progyny, Inc. 24.27 +2.82 (+13.15%)NEGG Newegg Commerce, Inc. 18.71 +2.14 (+12.91%)SOUN SoundHound AI, Inc. 12.71 +1.33 (+11.69%)SM SM Energy Company 27.83 +2.49 (+9.83%)Top losersRUN Sunrun Inc. 9.84 -1.27 (-11.43%)HL Hecla Mining Company 5.59 -0.57 (-9.25%)FICO Fair Isaac Corporation 1,703.17 -166.66 (-8.91%)SSRM SSR Mining Inc. 12.28 -1.17 (-8.70%)IAG IAMGOLD Corporation 6.89 -0.61 (-8.13%)Most activePROK ProKidney Corp. 3.7300 +3.1235 (+515.00%)LCID Lucid Group, Inc. 2.3000 +0.1900 (+9.00%)NVDA NVIDIA Corporation 160.00 +1.76 (+1.11%)SOUN SoundHound AI, Inc. 12.71 +1.33 (+11.69%)SOFI SoFi Technologies, Inc. 19.95 +0.71 (+3.69%)Earnings eventsTrending tickersPROK ProKidney Corp. 3.7300 +3.1235 (+515.00%)QS QuantumScape Corporation 8.18 +1.17 (+16.69%)SOUN SoundHound AI, Inc. 12.71 +1.33 (+11.69%)INTC Intel Corporation 23.59 +1.59 (+7.23%)NVDA NVIDIA Corporation 160.00 +1.76 (+1.11%)Top economic events