Tech companies in Texas no longer see Bitcoin mining as a viable long-term business. They are turning to the AI market instead as they change up business ventures.
Bitcoin was off to a good start in 2024, setting a new record high in the early months. But then cryptocurrency as the market ran up against the wall of high US inflation and started to withdraw. Consumer interest began to wane, and internet searches for Bitcoin greatly increased after March of 2024.
What many investors noticed is that AI was taking the place of Bitcoin and crypto as the hot, new tech market. Microsoft, Nvidia, Google, and other tech giants were making billions of dollars in the AI industry, with their stocks rising as they invested more in this emerging market.
It was not long before the rest of the world started to catch on. Bitcoin was on the wane while AI was on the rise. Over in Texas, there is a shift in the tech culture. The Bitcoin mining farms are coming down and being replaced with data centers to meet the needs of companies focused on AI.
The AI Takeover
The doomsday prognosticators warned that artificial intelligence would take over the world, and in Texas, that is at least partially true. AI data centers are being built on the wide open spaces of Houston and Abilene. Cloud computing servers are big business over there, as they are key to providing enough power for AI programs.
Some of the new data centers being built in Texas will be some of the largest in the world when they are completed, and the race is on for companies to be the go-to providers for tech companies that need computing service for their artificial intelligence.
Data centers are shifting away from bitcoin mining to cloud computing and the ability to handle massive AI workloads. The energy demands are high, and these data centers need to be able to cool off quickly. All of that capability is being built right into the data centers, which are being designed from the ground up to accommodate AI.
The shift is already happening, and with fewer bitcoin farms left every month, there may be a fraction of the focus on mining next year as there has been this year. China and Russia are among the major countries that have cracked down on Bitcoin mining and made it harder for miners to create new bitcoin on their soil.
The shift to AI is happening on multiple fronts. It is taking place because there are greater restrictions for miners than there were in the past, and it is taking place because of the changing focus in the tech market. We expect this shift to continue in the coming months as Bitcoin struggles to get back to its previous highs.
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