Damn!
Even Bitcoin mining companies are starting to take on AI projects. Where exactly is the money to be made?
On October 27, Luxor, which got its start in Bitcoin mining infrastructure, announced a $16 million strategic investment round to expand its AI hardware, computing-power trading, and related businesses.
Note that this deal includes both new-share financing and sales of existing shares, so you can’t count the entire $16 million as new money the company has received and can spend at will.
What makes this news interesting is that it targets some very practical problems in the AI business: Where do you buy the machines? How are computing-power rental fees calculated? How do you weather price swings?
While everyone else is discussing which model is the smartest, Luxor is figuring out how to sell equipment, broker computing-power deals, and help clients manage price risk.
It’s a bit like a street suddenly becoming popular: while everyone else is busy opening trendy shops, it gets into real estate brokerage and sells renovation supplies on the side.
Luxor says the investment will go toward expanding its agent cloud platform, supporting working capital for its AI hardware business, and developing trading in computing-power derivatives. Its experience in hardware, electricity, and trading, built up through its mining business, provides the foundation for this expansion.
The public’s take: When you see a crypto company pivoting to AI, the most important question is whether it can keep making money from what it was already good at.
Experience with equipment procurement and electricity markets, along with an existing customer base, is worth paying attention to. But putting an AI label on the business won’t automatically shift its revenue and profits into a higher gear.
In particular, it’s important to distinguish between brokering the sale of a machine and buying machines to rent out yourself. The former depends on sales and commissions; the latter also means bearing equipment depreciation, vacancy, and the risk of customers paying late. They’re both called “computing-power businesses,” but the pressure they put on your wallet is very different.
What matters next is whether AI customers keep paying, whether the business can retain a healthy gross margin, and whether it can collect its earnings promptly.
AI really does need electricity and machines, but investors need the numbers to add up. A PowerPoint deck can be generated in seconds, but recouping your investment can’t.
#比特币生态 #Aİ #算力
Even Bitcoin mining companies are starting to take on AI projects. Where exactly is the money to be made?
On October 27, Luxor, which got its start in Bitcoin mining infrastructure, announced a $16 million strategic investment round to expand its AI hardware, computing-power trading, and related businesses.
Note that this deal includes both new-share financing and sales of existing shares, so you can’t count the entire $16 million as new money the company has received and can spend at will.
What makes this news interesting is that it targets some very practical problems in the AI business: Where do you buy the machines? How are computing-power rental fees calculated? How do you weather price swings?
While everyone else is discussing which model is the smartest, Luxor is figuring out how to sell equipment, broker computing-power deals, and help clients manage price risk.
It’s a bit like a street suddenly becoming popular: while everyone else is busy opening trendy shops, it gets into real estate brokerage and sells renovation supplies on the side.
Luxor says the investment will go toward expanding its agent cloud platform, supporting working capital for its AI hardware business, and developing trading in computing-power derivatives. Its experience in hardware, electricity, and trading, built up through its mining business, provides the foundation for this expansion.
The public’s take: When you see a crypto company pivoting to AI, the most important question is whether it can keep making money from what it was already good at.
Experience with equipment procurement and electricity markets, along with an existing customer base, is worth paying attention to. But putting an AI label on the business won’t automatically shift its revenue and profits into a higher gear.
In particular, it’s important to distinguish between brokering the sale of a machine and buying machines to rent out yourself. The former depends on sales and commissions; the latter also means bearing equipment depreciation, vacancy, and the risk of customers paying late. They’re both called “computing-power businesses,” but the pressure they put on your wallet is very different.
What matters next is whether AI customers keep paying, whether the business can retain a healthy gross margin, and whether it can collect its earnings promptly.
AI really does need electricity and machines, but investors need the numbers to add up. A PowerPoint deck can be generated in seconds, but recouping your investment can’t.
#比特币生态 #Aİ #算力