Northern Data Group announced on Monday that it is considering selling its Bitcoin mining business, Peak Mining, as it plans to strengthen its AI products.
Northern Data, an AI and high-performance computing (HPC) solutions company majority-owned by stablecoin giant Tether, is considering selling Peak Mining “to focus on accelerating its AI solutions business,” the company said in a statement on Monday. announced.
The sale will allow Northern Data to build a portfolio of generative AI cloud platforms and data centers, making it a “pure AI solutions business,” the company said.
“Our goal is to provide a seamless AI ecosystem that gives our customers access to intelligent and sustainable solutions, giving them the tools they need to realize breakthroughs that can change the course of history. ,” said Roseanne Kincaid-Smith, Northern Data Group COO. in a statement Monday.
It’s unclear when Northern Data intends to sell Peak Mining or how much it expects to sell it for in the future. Northern Data did not immediately respond to Decrypt’s request for comment on this story.
The company plans to use proceeds from the potential sale of Peak Mining to invest in the development and growth of its AI product platform, including new software tools and a suite of managed services, according to a company statement. The company is also considering spending money on acquiring more data centers and GPUs to power its AI computing.
Northern Data reported revenue of 26 million euros (about $28 million) and 59 million euros (about $64 million) in the second and third quarters of 2024, respectively, according to a financial report released last week. Revenues are not broken down by business line, but are a combination of the company’s data center, cloud, and Bitcoin mining businesses.
The company’s efforts to expand its data facilities come as energy consumption is expected to skyrocket globally, largely due to the increased use of AI-powered tools.
According to a report from Goldman Sachs Research published in May 2024, data center-derived electricity demand could increase by 160% by 2030 due to the use of AI. According to the report, processing a ChatGPT query requires approximately 10 times more power than generating a Google search.
Edited by Andrew Hayward
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