NVIDIA’s CEO, Michael Kagan, recently said that crypto doesn’t contribute anything to society. according to The Guardian. As an alternative, Kagan argues that NVIDIA’s technology should be used for developing AI. He argues that the processing power that NVIDIA’s tech is capable of generating could take AI to the next level. NVIDIA is planning to shift its focus from cryptocurrencies to artificial intelligence. NVIDIA is now shifting its focus toward Large Language Model (LLM) AI technology in its data-center business. This indicates that the company will be moving away from the cryptocurrency industry.
NVIDIA Is Now Focusing On Artificial Intelligence
NVIDIA’s decision to concentrate its business on AI technology shows the company’s vision. The company aims to harness the immense processing power of its GPUs for more innovative purposes, it seems. This move also aligns with the current global trend in AI applications and their potential. Among other things, Kagan said that you can now build new machines using AI in a matter of seconds. Considering that AI is becoming way too powerful, his point of view is understandable and seems logical.
“All this crypto stuff, it needed parallel processing, and [Nvidia] is the best, so people just programmed it to use for this purpose. They bought a lot of stuff, and then eventually it collapsed, because it doesn’t bring anything useful for society. AI does.”
NDIVIA CEO Michael Kagan
Skyrocketing GPU Prices Amid Increased Mining Demand
The cryptocurrency boom led to a surge in demand for GPUs. This was driven by the need for powerful processors in mining operations. As the demand increased, so did the prices of GPUs, and they are yet to go down. Even today, many consumers are having a hard time finding graphics cards at reasonable prices. Most industry experts believe that it is likely for GPU prices to stay this high for the years to come.
In 2021, NVIDIA addressed the issue by introducing “Lite Hash Rate” (LHR) technology. The first GPU to implement such tech was its RTX 3060 GPU. This variant specifically designed to reduce mining efficiency was a decent attempt in leveling things out. Moreover, the company later expanded this technology to other GPUs. However, this measure proved to be only a temporary solution. Just some months after the introduction of LHR, crypto devs were able to bypass the LHR algorithm’s limitations to some extent. This led to them unlocking full mining performance over time.
In 2022, the U.S. Securities and Exchange Commission (SEC) targeted NVIDIA. They required NVIDIA to pay $5.5 million as part of a settlement. The settlement in question was the failure of the company to inform its investors about the impact of Bitcoin mining on GPU demand. The SEC filing revealed that NVIDIA’s senior management was aware of the connection between mining and their business. According to the filing, he even expressed interest in pursuing the crypto-mining market.