Canadian mining company HIVE Digital Technologies has launched the first GPU cluster for artificial intelligence in Paraguay. It is already operational on real tasks, according to a press release.
The equipment is housed in a data center in Asunción and has been integrated into the BUZZ AI Cloud platform. A research team from Columbia University is using the cluster to train large language models.
This project is non-commercial and serves as a proof of concept (PoC) for distributed AI computing. The model is trained from New York (USA), while computations are performed on GPUs in Paraguay.
HIVE will collect data on latency, bandwidth, and load management. These metrics will help assess the scalability prospects of the HPC segment in the region.
The cluster in Asunción marks the first step in integrating AI and high-performance computing into HIVE's existing energy infrastructure in Paraguay. The company currently controls about 300 MW of hydroelectric capacity and plans to bring an additional 100 MW online. If the experiment proves successful, further investments in data centers could be planned through 2027.
Industry Shift
HIVE is not the only mining company seeking new revenue sources beyond cryptocurrency mining. ASIC hardware is unsuitable for AI, but many players control significant energy capacities and data centers that can be adapted for GPU clusters.
The firm is already restructuring its business: on March 16, HIVE announced the cessation of mining operations in Sweden and the expansion of GPU capabilities in Canada through its BUZZ division.
HIVE's approach contrasts with some competitors who are exiting Latin America. For instance, Bitfarms sold its site in Paraguay earlier this year and is focusing on developing data centers in North America.
In the past 24 hours, HIVE's stock price fell by 4% to $2.10. Over the last six months, shares have plummeted nearly 45%.
Source: Yahoo Finance.It’s worth noting that miner Cango reported a loss of $453 million in its first year of Bitcoin mining and is moving towards AI infrastructure.
Bitcoin or artificial intelligence: what will miners choose?