Lower profitability and a mature market are forcing the largest players in the Bitcoin industry to shift their focus to new technologies. Bitmain is the undisputed world leader when it comes to crypto mining hardware. According to Bernstein Research, Bitmain made profits between $ 3 billion and $ 4 billion in 2017, controlling 80% of the crypto mining market. It may therefore come as a surprise that they are moving towards AI. Bitmain CEO Jihan Wu told Bloomberg that the company will bring its expertise to develop application-specific integrated circuits (ASICs) for the AI market. ASIC chips used in the company’s powerful crypto miners are also used in machine learning. Therefore, the company could benefit greatly from this emerging area. Crypto mining companies have both the technological capabilities and the financial resources to focus on making AI chips.
Bitmain jumped on the AI bandwagon back in 2018. The company released Sophon, an AI chip that performed millions of calculations per second to compete with internationally renowned chip manufacturers such as Nvidia and AMD. Bitmain believes that up to 40% of Bitmain’s revenue could come from AI sales in five years.That seems ambitious as the $ 4 billion in profit they made last year is likely to grow as crypto mining becomes more popular. You will also have to compete with market leader Google, which is currently dominating the AI space. A stroke of luck for Bitmain is the fact that the Chinese government has effectively banned the use of Google’s chips. This is a relatively large market that Bitmain could control.