HIVE Digital Technologies (NASDAQ: HIVE) has announced a $30 million investment in state-of-the-art Nvidia (NASDAQ: NVDA) GPU clusters to advance its capabilities in artificial intelligence and high-performance computing. The strategic decision positions the company to capitalize on the growing AI market as major technology firms and startups increasingly invest in AI development. The investment includes acquisition of Nvidia's H100 and H200 GPU clusters, with the H100 cluster comprising 248 GPUs across nearly three-dozen nodes expected to be operational by the end of 2024.
The company projects a run-rate revenue of $15 million for its HPC business unit in the quarter following H100 cluster deployment. The H200 cluster, featuring over 500 GPUs across 64 nodes, is scheduled for deployment to customers in Q1 2025 with potential to generate annualized run-rate revenue exceeding $20 million by Q2 2025. This expansion comes at a time when generative AI is gaining significant traction across the technology industry, with major players investing billions annually in AI development while AI startups secure 40% of venture capital funding.
HIVE's dual-revenue model combines digital currency mining with HPC hosting, and the company anticipates its HPC services alone could achieve annualized run-rate revenue of $20 million by Q2 2025. The revenue potential stems from high-margin cloud computing and AI model training services. Executive Chairman Frank Holmes noted that revenue from just 10 MW of HPC Nvidia chips serving global AI demand could equate to that of 100 MW of Bitcoin mining, highlighting the significant efficiency and profitability potential of this strategic shift.
President and CEO Aydin Kilic expressed enthusiasm about expanding server capacity with next-generation AI computing powered by Nvidia's latest GPUs based on Nvidia reference architecture. The company is also preparing to implement liquid-cooled data center technology in existing HIVE data centers to accommodate high-density computing requirements. This technological upgrade aligns with the company's focus on leveraging green energy infrastructure, as HIVE aims to power its AI initiatives using 100% renewable energy sources.
The company has established an ambitious target of $100 million in revenue by 2025 through its HPC services and Bitcoin mining data center conversion initiatives. As the AI industry continues its rapid expansion, HIVE's substantial investment in cutting-edge GPU technology positions the company to potentially capitalize on increasing demand for AI and high-performance computing services. This strategic move could have significant implications for the company's future growth trajectory and its role in the evolving AI ecosystem, particularly as evidence of return on investment in the AI space continues to grow according to industry analysts.
