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Core Scientific’s 104 megawatt Bitcoin mining data center in Marble, North Carolina

Carey McKelvey

AUSTIN — For five years, bitcoin miner Core Scientific has quietly been diversifying out of mining and into artificial intelligence, a market that will require immense amounts of power to handle the training of AI models and the massive workloads that follow.

The move is no longer a secret.

On Monday, Core Scientific announced a 12-year deal with cloud provider CoreWeave to provide infrastructure for use cases like machine learning. Core Scientific said the agreement, which expands upon an existing partnership between the two companies, will add revenue of more than $3.5 billion over the course of the contract.

CoreWeave, backed by Nvidia, rents out graphics processing units (GPUs), which are needed for training and running AI models. CoreWeave was valued at $19 billion in a funding round last month. Core Scientific will deliver about 200 megawatts of infrastructure to CoreWeave’s operations.

Core Scientific, which emerged from bankruptcy in January, has been mining a mix of digital assets since 2017. The company began to diversify into other services in 2019.

“The best way to think about bitcoin mining facilities is that we are essentially power shells to the data center industry,” Core Scientific CEO Adam Sullivan told CNBC.

Sullivan jumped into the role of CEO while the company was still in the throes of bankruptcy, which resulted from the collapse of bitcoin in 2022. Since then, the former investment banker has settled debts with angry lenders and further beefed up the company’s non-bitcoin business as it reentered the public market.

Bitcoin miners are shifting to AI

Though Core is up more than 40% since relisting earlier this year, its market capitalization of around $865 million is significantly lower than its valuation of $4.3 billion in July 2021.

Demand for AI compute and infrastructure surged after OpenAI unveiled ChatGPT in Nov. 2022, setting off a rush of investment in AI models and startups. Meanwhile, Core Scientific and other miners like Bit Digital, Hive, Hut 8, and TeraWulf have been looking to bolster their revenue streams after the so-called bitcoin halving in April cut rewards paid out to bitcoin miners by 50%.

Many have been retrofitting their massive facilities to meet the needs of the market.

“Bitcoin miners, often stationed in energy-secure and energy-intensive data centers, find these facilities ideal for AI operations as well,” said James Butterfill, head of research at digital asset firm CoinShares.

Butterfill said the the overlap is leading to a competition for rack space between bitcoin mining and AI activities. While AI operations require up to 20 times the capital expenditure of bitcoin mining, they’re more profitable, according to a report from CoinShares.

“The introduction of AI activities leads to increased depreciation and amortization, which can enhance gross profit margins,” Butterfill said.

According to CoinShares, Bit Digital derives 27% of its revenue from AI. Hut 8 generates 6% of sales from AI, and Hive, which has data centers in Canada and Sweden, gets 4% of its revenue from these services.

Read more about tech and crypto from CNBC Pro

Hut 8 said in its first-quarter earnings report that it had purchased its first batch of 1,000 Nvidia GPUs and secured a customer agreement with a venture-backed AI cloud platform as part of its expansion into new technologies offering higher returns.

“We finalized commercial agreements for our new AI vertical under a GPU-as-a-service model, including a customer agreement which provides for fixed infrastructure payments plus revenue sharing,” said Hut 8 CEO Asher Genoot.

Genoot added that the company expects to begin generating revenue in the second half of the year at an annual rate of about $20 million.

Bit Digital had 251 servers actively generating revenue from its first AI contract as of the end of April, and the company said it earned about $4.1 million of revenue from the operation that month.

Iris Energy expects to generate between $14 million and $17 million in annual revenue from its AI cloud services. Core Scientific’s expanded arrangement with CoreWeave is expected to produce annual revenue of $290 million.

Large-scale bitcoin miners are competing head on with AI companies for power: Marathon Digital CEO

“While we intend to remain one of the largest and most productive bitcoin miners, we expect to have a diversified business model and more predictable cash flows,” Sullivan said.

Bitcoin’s volatility has made mining a challenging business.

Though bitcoin is currently up more than 150% in the past year to around $69,000, the bear market of 2022 sent many miners into bankruptcy or forced them to shutter altogether.

Complicated move to AI

Pivoting to AI isn’t as simple as repurposing existing infrastructure and machines, because high-performance computing (HPC) data center requirements are different, as are the needs of the data network.

“Besides transformers, substations, and some switch gear nearly all infrastructure miners currently have would need to be bulldozed and built from the ground up to accommodate HPC,” Needham analysts wrote in a report on May 30.

The rigs used to mine bitcoin are called Application-Specific Integrated Circuits (ASICs). They’re built specifically for crypto mining and can’t be used to do other things.

Needham estimates that HPC data centers run at $8 million to $10 million per megawatt in capex, excluding GPUs, whereas bitcoin mining sites typically operate at $300,000 to $800,000 per megawatt in capex, not including ASICs.

Core’s Sullivan says there’s a lot of synergy between the two businesses.

“One of the most exciting parts about the bitcoin mining business is we have access to large amounts of power across the United States with access to fiber lines,” he said.

Beyond its partnership with CoreWeave, Core Scientific has also announced that over the next three to four years, it’s working to convert 500 megawatts of its bitcoin mining infrastructure across the country to HPC data centers.

Sullivan said the retrofit is manageable because the company owns and controls all of its data center infrastructure.

“There are components that we have to purchase to retrofit for HPC, but it is things that we can easily acquire,” he said.

All eyes are on AI at SXSW

In the next one to two years, Needham analysts estimate that large publicly traded bitcoin miners are expected to more than double power capacity, including both their mining and HPC business expansion plans.

Clean energy is a popular choice because it’s the cheapest power source in many markets. Miners at scale compete in a low-margin industry, where their only variable cost is typically energy, so they’re incentivized to migrate to the world’s cheapest sources of power. An industry report estimates the bitcoin network is 54.5% powered by sustainable electricity.

The Electric Power Research Institute estimates that data centers could take up to 9% of the country’s total electricity consumption by 2030, up from around 4% in 2023. Tapping into nuclear energy is seen by many as the answer to meeting that demand.

TeraWulf powers its mining sites with nuclear energy, and is looking to get into machine learning. So far, the firm has two megawatts dedicated to HPC capacity, though it has plans to transition its energy infrastructure toward AI and HPC.

OpenAI CEO Sam Altman told CNBC last year that he’s a big believer in nuclear when it comes to serving the needs of AI workloads.

“I don’t see a way for us to get there without nuclear,” Altman said. “I mean, maybe we could get there just with solar and storage. But from my vantage point, I feel like this is the most likely and the best way to get there.”

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Italian DC fast charger maker Alpitronic enters the US market [video]

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Italian DC fast charger maker Alpitronic enters the US market [video]

Electrek‘s Seth Weintraub went to Alpitronic America’s new HQ to speak with CEO Mike Doucleff about its plans to roll out its ultra-fast chargers across the US.

Bolzano, Italy-based Alpitronic was founded in 2009, and it specializes in the development and production of DC fast chargers. The global company’s best-known product line is the Hypercharger, an ultra-fast EV charging station that can deliver charging power from 50 kW to 400 kW, depending on the model.

Alpitronic Americas recently announced an agreement with Mercedes-Benz High-Power Charging to become the first DC fast-charging network to deploy Hypercharger 400 units at scale in the US.

Alpitronics Americas’ new headquarters’ 68,000-square-foot office and industrial space in Charlotte, North Carolina, includes a diagnostics laboratory and repair center, a spare parts warehouse, a training center, and space for as many as 300 employees.

The Bolzano, Italy-based company’s Hyperchargers achieve, on average, an efficiency rate greater than 97.5%, and that its repair and service network can service chargers anywhere in the US.

Alpitronic cofounder and CEO Philipp Senoner said, “As a natural part of Alpitronic’s growth, we are anxious to expand our industry-leading Hypercharger network from Europe, where we are market-share leader, to North America. We are pleased with the talent we are finding in North Carolina and look forward to setting a new standard for the EV charging network in the US.”

Alpitronic chargers support all EV brands. Pre-production units have been tested publicly in Rock Hill, SC, and Portland, OR. The first US-built, public chargers are expected to be installed and available in October.

Seth and Mike Doucleff discuss what Aliptronic’s main driver was to come to the US, what attracted them to Charlotte, and what the company thinks the future of DC fast chargers is in the US, among other things. Their conversation begins at 00:41 on the Electrek podcast below:


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Volvo CE rolls out some new hotness at Volvo Days 2024 [part 1]

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Volvo CE rolls out some new hotness at Volvo Days 2024 [part 1]

This week, Volvo Group held its once-every-three-years “Volvo Days” event in Shippensburg, PA for the first time since the pandemic, showing off tons (literally!) of new equipment, new trucks, and new concepts – including a couple of “world’s first” debuts.

What is Volvo Days? That might require a bit of background …

The heavy equipment world operates on something of a three-year cycle. ConExpo, the industry’s biggest trade show, happens every three years. That sets the tone, with companies showing off all their hottest concepts and forward-thinking new projects. That’s year 1. Year 2 is typically when shows like Volvo Days typically take place, with manufacturers rolling out the production versions of the concepts they showed at ConExpo and inviting a mix of dealers, end-users, and journalists in to try out some of what got showed at ConExpo. Year 3 is more insular, with the manufacturers bringing in salespeople to get them trained on new products and prepare them for how to talk about what the company is planning to show at next year’s ConExpo.

ConExpo was last year, so this year we get Volvo Days – for the first time since 2018, in fact, since the 2021 event was canceled due to COVID. That makes this the first Volvo Days in six years … and expectations were high.

The kickoff

Volvo Days, night 1; kickoff.

Volvo kicked off the week’s events with a drone display highlighting the company’s construction equipment history – appropriate, given that the event was held at Volvo CE’s Pennsylvania engineering and production campus. The drone show was followed by a genuinely impressive, highly choreographed equipment ballet that featured new electric equipment shown for the first time in North America, as well as the new-for-2025 Volvo VNL and Mack MD Electric trucks doing some heavy lifting and hauling.

The show lasted well over thirty minutes, and it was impossible for me to keep track of everything that was happening, but you can get a sense of it in the video (above).

Compact electric equipment

Volvo had its new, in-production L20/120 Electric wheel loader and ECR25 Electric excavator front and center in its reception center, along with information highlighting their competitive advantages in the compact equipment space.

The best thing about Volvo Days, however, isn’t that they have interesting vehicles on display – it’s the fact that nearly every one of those interesting vehicles is available to experience first hand … including the 30-ton EC230 Electric excavator.

Volvo Electric excavators with Steelwrist; photo by the author.

All the electric excavators (even the mini) were incredibly smooth and quiet, with noticeably fewer vibrations than their diesel counterparts … which we also got to play with.

That said, I’m not a “real” equipment operator, which means my seat of the pants impressions are probably worth less than those of the people who use these things every day. That’s why I was glad to have Mike Switzer, my co-host on The Heavy Equipment Podcast, along for the ride.

“It’s really impressive, and the articulation on the Steelwrist is incredible,” Mike told me, after hopping out of the demo EC230. “I’ve seen it before, obviously, but I’ve never had a chance to use it. I think every municipality needs to take a look at that.”

Electric compaction

Volvo electric compactors; image by the author.

Over on the compaction side, Volvo had its DD25 Electric vibrating drum compactor on display – where the all-electric tandem roller was joined by two all-new siblings being shown off for the first time ever: a pre-production DD15 Electric “mini” compactor prototype seemingly designed for sidewalks and driveways, and the TC13 Electric trench compactor.

The TC13 Electric is designed as a walk-behind unit that uses its heavy batteries to provide the compaction mass – but those heavy batteries won’t get depleted in the hour or so of operation that most trench compactors see on a busy day. To keep the little TC13 useful throughout the day, Volvo gave it a pair of 110 and 220V outlets.

TC13 power outlets; photo by the author.

Specs weren’t released, but Volvo’s compaction brand manager claimed those outlets were more than capable of keeping the rest of the job site’s battery-operated tools running all day long, and even packed enough juice (in a pinch) to power a portable office, table saw, or drill press.

“Did you see his face when I asked if it could run an arc welder?” asked Mike, smiling. “He said, ‘It’s not something we’d advise,’ but you could tell he liked that question.”

Yeah, he did!

Electrek’s Take

Jo Borrás looking for prizes; photo by Jefferson Yin.

Somewhere around the twenty minute mark of the “equipment ballet” show, something broke inside my brain. I think it was the sparks flying off the bucket when the L20 Electric scooped up a few thousand pounds of gravel and sand at full speed, scraping its bucket along the ground. Maybe it was the hydrogen-powered articulated loader, or the open bar.

Regardless, one thing that was made very clear at Volvo Days ’24 is that, while other companies are still developing the initial entries into the electric commercial vehicle space, Volvo has not just a full line of products – but an expanding line of products, with the company entering new spaces specifically because of the unique advantages electric offers.

As Volvo’s North American President, Scott Young, explains, the future is electric, and Volvo’s vision for the future has the company firmly in the leadership position … but more on that in part 2.

ORIGINAL CONTENT FROM ELECTREK.

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Lucid opens Detroit hub to tap into US legacy auto talent pool

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Lucid opens Detroit hub to tap into US legacy auto talent pool

EV maker Lucid Motors (LCID) opened its new office in Detroit this week, hoping to attract engineers from “one of the biggest talent pools in the Western world.”

Lucid sets up shop in Detroit for engineering talent

Lucid celebrated the grand opening of its new office in Southfield, Michigan, roughly 15 miles northwest of Detroit.

At its new office, Lucid is “growing our team of hardware engineers, R&D, operations, and more” as it looks toward its next growth phase.

“We need talent quickly, and that’s what this hub is about,” Eric Bach, Lucid’s senior vice and chief engineer, said at an event at the company’s new office.

Bach explained that as Ford and GM take talent from EV startups like Lucid, Tesla, and Rivian, Lucid looks to attract traditional engineering skills that are central to Detroit.

The company has already hired 24 engineers at its new hub, according to Lucid’s vice president of vehicle engineering, Charles Wildig told Automotive News. However, it plans to hire another 30 by the end of the year while growing its engineering team “exponentially.”

Lucid-Gravity-Air-EVs
Lucid Air (left) and Gravity SUV (right) models (Source: Lucid)

Wildig said that Lucid gets double the number of applications for every engineering position in Michigan compared to California.

“Michigan is one of the biggest talent pools in the Western world for automotive,” he said, adding, “It’s very difficult to find that kind of talent in California.”

Lucid-Gravity-SUV
Lucid Gravity SUV (Source: Lucid)

The next growth phase

Lucid is adding engineering talent as it prepares to launch its first electric SUV, the Gravity, later this year.

Last week, during its Technology & Manufacturing Day, Lucid revealed that the Gravity will feature an NACS port in 2025, unlocking access to over 15,000 Tesla superchargers.

Lucid also showcased how the electric SUV and advanced future technology will enable “mass savings.”

CEO Peter Rawlinson claims Lucid is already “years ahead of the competition” but promises new tech, like its next-gen “Atlas” drive units, will be even more advanced.

Lucid-tech-advantage
(Source: Lucid Motors)

The drive unit’s smaller, more efficient design will unlock more performance at a lower cost. The next-gen tech will power Lucid’s new midsize EV platform. Lucid teased its upcoming midsize electric SUV during the event, due out in 2026.

The midsize SUV will be the first to launch on Lucid’s new lower-cost platform. Last month, the company confirmed to Electrek that it plans to launch three lower-cost models on the midsize platform.

Lucid-teases-midsize-SUV
Lucid midsize electric SUV teaser image (Source: Lucid)

Lucid is already backing up its claim of being “years ahead,” with the 2025 Air Pure being the most energy-efficient mass-production car ever, with a record 146 MPGe and 5 miles per kWh efficiency. The cheapest trim starts at $71,400.

The Lucid Air is the longest-range EV on the market, with some models offering over 500 miles range.

Lucid-most-energy-efficient-EV
(Source: Lucid Motors)

Lucid’s Gravity electric SUV will launch later this year, starting at under $80,000. The midsize electric SUV is expected to launch in 2026, starting at around $50,000

Bach said Lucid is in talks with “many” automakers about sourcing its EV powertrain tech. The company already secured a deal with Aston Martin to provide EV battery and powertrain tech last June.

Because of its compact design, the powertrain can easily fit into rivals’ systems. “That means everybody can just plug and play technically,” Bach said. He added, “We are open for business,” and Lucid wants to “embrace” the competition.

Source: Automotive News, Lucid Motors

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