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On November 10, 2023, Singapore-based Bitcoin mining platform, Bitdeer (NASDAQ: BTDR), announced their partnership with U.S. chip giant NVIDIA. Bitdeer became Nvidia’s first Cloud Service Provider (CSP) partner in Asia to offer DGX H100 SuperPOD cloud services and the company will receive priority supply from the chipmaker to provide GPU cloud services for AI model development and training. The press conference was held at NVIDIA’s office in Singapore, where representatives from both sides made the partnership announcement.
NVIDIA, headquartered in Santa Clara, California, was founded in 1993 and is now recognized as the global leader in graphics processing technology. In as early as 1999, NVIDIA defined the GPU which has fundamentally changed parallel computing. In 2020, NVIDIA surpassed Intel in market value, becoming the highest-value chip manufacturer in the U.S.. With the AI revolution triggered by Open AI’s ChatGPT in 2023, demand for AI model training and acceleration skyrocketed, which further pushed NVIDIA’s market value over 1 trillion dollars, making it the first chip company to achieve this milestone.
Bitdeer, founded in 2018 by Jihan Wu, the co-founder of Bitmain and Matrixport, is one of the world’s largest self-operated mining data center owners and the largest computing power sharing service provider. As of October 31, 2023, Bitdeer has six large data centers globally, with a total of 21.2 EH/s Bitcoin hash rate under their management.
Given the complementary nature of the two companies’ shared expertise, the formation of this partnership is a natural progression. Back in 2017, the stock price of NVIDIA and their graphics card sales experienced explosive growth with the rise of cryptocurrency mining. At the end of 2017, NVIDIA even introduced the P106 and P104 series professional mining graphics cards. The company’s Q4 Financial report in 2018 showed its graphics processor annual revenue reached a record $9.71 billion, a 41% increase from the same period a year earlier. However, this brought some trouble for gamers as graphics cards were in short supply and prices were soaring.
During that time, Bitdeer was busy constructing data centers worldwide. According to publicly disclosed information on Bitdeer’s website, its data center team has established more than 30 data centers globally. Currently, Bitdeer independently operates and manages six large data centers, including one of the largest in North America. In May 2023, Bitdeer initiated a strategic partnership with Druk Holdings and Investments (DHI), the commercial arm of the Royal Government of Bhutan, to build 600 MW data centers in Bhutan, approximately equivalent to a total of 20 EH/s hash rate capacity. In an environment of energy shortages and data center scarcity, robust data center construction capabilities and energy supply reserves have become competitive advantages. Bitdeer obviously has that.
Moreover, Bitdeer is a leader in cloud computing services in the crypto industry. Before collaborating with NVIDIA, Bitdeer mainly focused on SHA256 cloud computing products, which is different from GPU cloud services. The former is more relevant to Bitcoin mining. GPU cloud services on the other hand, are more diverse. Many cutting-edge technologies such as graphics technologies, scientific research, artificial intelligence, large language models, network security, medical imaging, autonomous driving, and more, require GPU computing power.
According to Bitdeer’s AI development roadmap, the company is planning to launch a broad range of cloud services, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), software-as-a-service (SaaS), and application-as-a-service (AaaS). Infrastructure development and deployments, such as GPU, DGX and SuperPod, will make it possible for Bitdeer to launch cloud computing platforms for AI training, AI software tools, AI APIs and more. According to the roadmap, Bitdeer will eventually become a platform that provides a full range of AI solutions, contributing to the robust growth of the AI industry.
Bitdeer stands at the forefront of Web3 innovation, showcasing unparalleled expertise in data center construction and operation coupled with a reliable, cost-effective energy supply. Through strategic collaboration with industry titan NVIDIA, the company is poised for exponential growth. As Bitdeer explores new frontiers in AI, the burning question remains: Will its foray into AI surpass the success of its renowned Bitcoin mining operations?