Because the debut of ChatGPT, generative AI has taken middle stage. On one aspect of the spectrum, AI startups are securing 40% of venture capital, whereas on the opposite, tech leaders like Amazon AMZN, Microsoft MSFT, Google GOOG and Meta META are pouring wherever between $30 billion and $60 billion in funding every year. According to Goldman Sachs, this expertise cycle is the true deal, as proof of a return on funding (ROI) within the house turns into extra obvious.
Two firms working arduous to place themselves on the forefront of AI innovation are Nvidia NVDA, which has change into synonymous with AI chip expertise, and HIVE Digital Applied sciences HIVE, a Vancouver, Canada-based firm serving to pioneer AI options and Bitcoin mining. HIVE has labored to place itself on the innovative of knowledge middle innovation and has been collaborating intently with Nvidia over the previous 12 months in a key strategic partnership.
HIVE Digital Applied sciences reviews it has superior its high-computing capabilities by upgrading its Nvidia chip suite with state-of-the-art expertise to gasoline the AI growth. HIVE has made a blockbuster $30 million funding to safe Nvidia’s extremely coveted H100 and H200 GPU clusters – highly effective methods integrating GPUs on each node – set to be deployed in Quebec.
HIVE Digital Applied sciences’ funding displays its dedication to advancing its capabilities in AI and high-performance computing (HPC). Traders considering exploring alternatives in AI expertise can be taught extra about HIVE Digital Applied sciences right here.
Cluster Breakdown
By way of its funding, HIVE is deploying Nvidia’s supercomputing clusters with clients. These embody the next:
- The Nvidia H100 cluster contains 248 GPUs throughout almost three-dozen nodes which might be linked with the Infiniband laptop networking normal. This cluster is already absolutely configured and was deliberate to be operational earlier than year-end 2024. The corporate predicts a run-rate income for its HPC enterprise unit to hit $15 million within the quarter following H100 cluster deployment to end-users.
- The Nvidia H200 cluster boasts over 500 GPUs throughout 64 nodes, which is anticipated to achieve Quebec in early January and be deployed to clients in Q1 2025. HIVE initiatives that the H200 cluster might generate an annualized run-rate income of over $20 million by Q2 2025, with margins doubtlessly exceeding these of Bitcoin mining
Hive’s Return On Invested Capital
HIVE Digital Applied sciences reviews it has established a robust foothold in HPC, producing roughly $10 million in annualized run-rate income in October and November. With its expanded Nvidia chip portfolio, HIVE goals to deepen its give attention to AI alternatives. The corporate anticipates these new supercomputing clusters will unlock recent AI income streams that align with its excessive sustainability requirements by harnessing 100% inexperienced vitality sources.
HIVE Digital Applied sciences operates a dual-revenue mannequin, combining digital foreign money mining with HPC internet hosting. With the deployment of Nvidia clusters for purchasers, HIVE initiatives its HPC companies alone to realize an annualized run-rate income of $20 million by Q2 2025, pushed by high-margin cloud computing and AI mannequin coaching companies.
HIVE Govt Chairman Frank Holmes likens the income potential from simply 10 MW of HPC Nvidia chips serving world AI demand to that of 100 MW of Bitcoin mining.
HIVE President and CEO Aydin Kilic commented, “Wanting ahead, we’re very excited to construct on this momentum and develop our server capability with next-generation AI computing powered by NVIDIA’s newest GPUs, based mostly on NVIDIA reference structure. Additional, we’re getting ready for the supply of liquid-cooled knowledge middle expertise in our present HIVE knowledge facilities for the following technology of high-density compute.”
HIVE’s latest funding in Nvidia chip clusters seems to be to place the corporate for potential development within the AI and HPC sectors. This funding aligns with HIVE’s give attention to AI expertise and its dedication to leveraging inexperienced vitality infrastructure. HIVE has set a goal of $100 million in income by 2025 by means of its HPC companies and Bitcoin mining knowledge middle conversion, although attaining this relies on varied elements, together with market circumstances.
Traders who’re considering studying extra about this play on high-performance computing and AI knowledge facilities can be taught extra about HIVE Digital Applied sciences’ inventory right here.
Featured picture by haidermah on Pixabay.
This put up accommodates sponsored content material. This content material is for informational functions solely and isn’t supposed to be investing recommendation.
Market Information and Knowledge dropped at you by Benzinga APIs
© 2025 Benzinga.com. Benzinga doesn’t present funding recommendation. All rights reserved.
