Bitdeer Jumps on AI Bandwagon with NVIDIA Partnership

Bitdeer expects to launch the AI service platform in Q1 2024

Bitdeer becomes the latest bitcoin mining and colocation provider to jump on the generative AI bandwagon in a strategy to diversify its business segments further.

The U.S.-listed company announced on Friday that it has become a preferred cloud service provider in the NVIDIA Partner Network and plans to launch Bitdeer AI Cloud targeting the Asia region.

According to the release, Bitdeer aims to become an infrastructure, platform, software, and application provider for customers who want to tap into the generative AI market based on NVIDIA’s DGX SuperPOD hardware and systems. It expects to launch the AI product in Q1 2024.

Bitdeer’s AI strategy follows similar moves announced by other North American bitcoin mining and data center operators such as Hut 8, Iris Energy, Applied Digital as well as Germany-based Northern Data, which recently received a $600 million credit facility from stablecoin issuer Tether.

Iris Energy announced in August the purchase of 248 NVIDIA’s latest-generation AI H100 GPUs for about $10 million. In September, Northern Data purchased more than 10,000 H100 GPUs to expand into the AI cloud servicing race for a total cost of $427 million. It remains to be seen when these companies will report material revenues generated from such AI offerings.

Bitdeer was spun off from Bitmain as part of crypto mogul Jihan Wu’s plan to resolve the year-long dispute with his fellow co-founder at Bitmain Micree Zhan in 2021.

The company operates nearly 900 megawatts of bitcoin mining capacities across the U.S., Europe, and Asia with business segments across proprietary mining, cloud mining, and hosting. The company did not specify in the release how it aims to scale its facility and power capacities for the AI cloud offering.