Miners have approximately nine months to strike profitable contracts with major cloud providers and AI companies for data center services and high-performance computing. This prediction comes from analysts at JPMorgan, who note that the growing demand for computational power in artificial intelligence (AI) presents lucrative opportunities.

“Miners have about nine months to secure advantageous deals with well-funded hyperscalers or AI startups while data center applications remain pending and await network connectivity,” analysts Reginald Smith and Charles Pierce stated in their report.

According to the study, miners can leverage their existing infrastructure to provide AI hosting services, but the pool of potential partners is limited. Key clients will likely include major cloud providers and well-funded startups. For example, constructing a 100 MW facility equipped with cutting-edge GPUs could cost around $3 billion.

Risks of Overestimating Demand

The CEO of MARA (formerly known as Marathon Digital), Fred Thiel, told Bernstein that the current AI boom resembles the internet bubble of the early 2000s. He warned that some companies might overbuild infrastructure without sufficient demand, leading to potential financial difficulties.

“Many companies, especially smaller players, risk encountering problems due to overestimating demand, which could ultimately harm their finances,” added Gautam Chhugani, head of digital assets.

Despite these risks, Thiel sees significant opportunities for miners, particularly those who can integrate AI into their operations. He also suggested that successful miners will utilize low-cost electricity and partner with cloud provider data centers.

Development Prospects

Several mining companies are already exploring AI as a promising avenue, leading to diversification of their business models. However, experts caution that some miners may face challenges due to insufficient hash rate growth if they focus exclusively on AI.

It’s worth noting that AI offers 17-25 times more revenue per kilowatt-hour compared to Bitcoin mining ($0.17-0.20 versus $3-5), making this sector particularly attractive, according to analysts.