The Chinese company Bitmain Technologies is known primarily as the largest producer of ASIC-miners for bitcoin and a number of other cryptocurrencies, but now seriously considers the AI market as an alternative source of revenue. This was stated in an interview with Bloomberg Businessweek co-founder of the company Cihan.
According to him, this is a direct result of the prohibitive measures imposed by the Chinese authorities on the market of the cryptocurrency and ICO.
“As a Chinese company, we must be ready [for this scenario],” said Jihan Wu.
He declined to comment on the profits of Bitmain Technologies, but according to the publication, in 2017 this figure was $3.5 billion. However, Cihan Wu does not exclude that, following the ban on ICO and the work of cryptocurrency exchanges, the Chinese authorities can limit and the work of the mining companies. This, in turn, will lead to a serious blow to Bitmain, which supplies the miners with the necessary equipment and chips.
AI-chips can thus become an important source of the company’s alternative source of revenue.
“Artificial intelligence requires a lot of computation,” Cihan Wu said.
In his estimation, in five years the sales of AI-chips can make up to 40% of the operating profit of Bitmain Technologies.
Recall plans to win a share in the market of artificial intelligence is also nurtured by the Chinese company Canaan Creative, the first manufacturer of ASIC-miners Avalon. Earlier this month, it was reported that the company’s initial public offering (IPO), during which it intends to raise $1 billion, could be held on the Hong Kong Stock Exchange.
A report published in late February showed that Bitmain, founded 4 years ago, in 2017 earned from $ 3 billion to $ 4 billion, thus outstripping Nvidia, a company with a 27-year history.