--News Direct--
By Gerelyn Terzo, Benzinga
Since the debut of ChatGPT, generative AI has taken center stage. On one side of the spectrum, AI startups are securing 40% of venture capital, while on the other, tech leaders like Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), Google (NASDAQ: GOOG) and Meta (NASDAQ: META) are pouring anywhere between $30 billion and $60 billion in investment each year. According to Goldman Sachs, this technology cycle is the real deal, as evidence of a return on investment (ROI) in the space becomes more apparent.
Two companies working hard to position themselves at the forefront of AI innovation are Nvidia (NASDAQ: NVDA), which has become synonymous with AI chip technology, and HIVE Digital Technologies (NASDAQ: HIVE), a Vancouver, Canada-based company helping pioneer AI solutions and Bitcoin mining. HIVE has worked to position itself at the cutting edge of data center innovation and has been collaborating closely with Nvidia over the past year in a key strategic partnership.
HIVE Digital Technologies reports it has advanced its high-computing capabilities by upgrading its Nvidia chip suite with state-of-the-art technology to fuel the AI boom. HIVE has made a blockbuster $30 million investment to secure Nvidia’s highly coveted H100 and H200 GPU clusters – powerful systems integrating GPUs on every node – set to be deployed in Quebec.
HIVE Digital Technologies’ investment reflects its commitment to advancing its capabilities in AI and high-performance computing (HPC). Investors interested in exploring opportunities in AI technology can learn more about HIVE Digital Technologies here.
Cluster Breakdown
Through its investment, HIVE is deploying Nvidia’s supercomputing clusters with customers. These include the following:
The Nvidia H100 cluster includes 248 GPUs across nearly three-dozen nodes that are connected with the Infiniband computer networking standard. This cluster is already fully configured and was planned to be operational before year-end 2024. The company predicts a run-rate revenue for its HPC business unit to hit $15 million in the quarter following H100 cluster deployment to end-users.
The Nvidia H200 cluster boasts over 500 GPUs across 64 nodes, which is expected to reach Quebec in early January and be deployed to customers in Q1 2025. HIVE projects that the H200 cluster could generate an annualized run-rate revenue of over $20 million by Q2 2025, with margins potentially exceeding those of Bitcoin mining
Hive’s Return On Invested Capital
HIVE Digital Technologies reports it has established a strong foothold in HPC, generating approximately $10 million in annualized run-rate revenue in October and November. With its expanded Nvidia chip portfolio, HIVE aims to deepen its focus on AI opportunities. The company anticipates these new supercomputing clusters will unlock fresh AI revenue streams that align with its high sustainability standards by harnessing 100% green energy sources.
HIVE Digital Technologies operates a dual-revenue model, combining digital currency mining with HPC hosting. With the deployment of Nvidia clusters for customers, HIVE projects its HPC services alone to achieve an annualized run-rate revenue of $20 million by Q2 2025, driven by high-margin cloud computing and AI model training services.
HIVE Executive Chairman Frank Holmes likens the revenue potential from just 10 MW of HPC Nvidia chips serving global AI demand to that of 100 MW of Bitcoin mining.
HIVE President and CEO Aydin Kilic commented, “Looking forward, we are very excited to build on this momentum and expand our server capacity with next-generation AI computing powered by NVIDIA’s latest GPUs, based on NVIDIA reference architecture. Further, we are preparing for the provision of liquid-cooled data center technology in our existing HIVE data centers for the next generation of high-density compute.”
HIVE’s recent investment in Nvidia chip clusters looks to position the company for potential growth in the AI and HPC sectors. This investment aligns with HIVE’s focus on AI technology and its commitment to leveraging green energy infrastructure. HIVE has set a target of $100 million in revenue by 2025 through its HPC services and Bitcoin mining data center conversion, though achieving this depends on various factors, including market conditions.
Investors who are interested in learning more about this play on high-performance computing and AI data centers can learn more about HIVE Digital Technologies’ stock here.
Featured photo by haidermah on Pixabay.
Benzinga is a leading financial media and data provider, known for delivering accurate, timely, and actionable financial information to empower investors and traders.
This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.
Contact Details
Benzinga
+1 877-440-9464
Company Website
View source version on newsdirect.com: https://newsdirect.com/news/hive-digital-nasdaq-hive-makes-ai-push-with-30-million-nvidia-nasdaq-nvda-chip-investment-654756148
