“The pivot to AI comes with risks, including heavy borrowing and concerns about sustainability, with potential shortfalls if demand for AI slows.”, — write: www.coindesk.com
The new chips, available through Amazon Web Services (AWS), promise a fourfold increase in training speed over the previous version, while maintaining the same energy footprint. The move will put the tech giant in competition with Google and Nvidia as the scramble for infrastructure heats up.
Each cluster of Amazon’s new “UltraServers” can run up to 144 Trainium 3 chips, positioning them to handle large-scale language model training and other compute-heavy tasks. The launch is part of Amazon’s broader push to expand its AI infrastructure and reduce dependence on others.
Amazon’s push, coupled with Google’s dominance in the AI model race, where it now has an 87% chance of securing the best one by the end of the year, has reportedly seen OpenAI’s Sam Altman declare a “code red.”
AI and cryptoHowever, building more AI servers creates a problem that few tech giants can solve on their own: finding enough power and space. That’s where crypto miners, which already have large data centers operational, are stepping in, using some of their hardware to enter the AI arms race and profit off of it.
Amid the arms race and following the 2024 Bitcoin halving, which cut block rewards in half, several large mining firms began repurposing their energy-intensive operations into AI-ready facilities. Companies like Core Scientific, CleanSpark, and Bitfarms are now being viewed less as bitcoin bets and more as utility providers for hyperscalers.
Bitcoin miner-turned-neocloud firm IREN (IREN) has, last month, soared after inking a $9.7 billion AI cloud deal with Microsoft (MSFT). Similarly, TeraWulf (WULF) inked a $9.5 billion AI infrastructure joint venture with Fluidstack, backed by Google.
These firms control gigawatts of power capacity, with existing infrastructure ready for AI clusters that require advanced cooling and stable grid connections.
Bubble risk?Still, the pivot comes with risks.
Miners are borrowing heavily to retrofit sites for AI workloads, and as investors grow wary of the sheer pace and scale of costs behind the “AI trade,” correlated risk assets (such as tech stocks and crypto) are under pressure.
Bitcoin BTC$92,229.52 is down more than 17% in the past 30 days, while the broader CoinDesk 20 (CD20) index lost 19.3% of its value over the same period. The tech-heavy NASDAQ 100 index is down around 1.5% over the past month, having recently recovered from a more than 7% drawdown in the period.
Analysts have warned that the AI infrastructure boom bears resemblance to past bubbles. OpenAI, for example, has committed to trillions in infrastructure spending, funds for which it still needs to raise.
Much of the capital being committed to the AI arms race is being recycled through the same players, selling AI chips or cloud services. If demand for AI slows, Bain & Co. has predicted a shortfall of up to $800 billion for these companies, which would need $2 trillion in combined annual revenue by 2030 to fund the computing power needed for projected demand.
If demand for AI compute slows, these hybrid operations could face the same liquidity crunch that plagued the crypto sector in 2022. Such a hit would likely affect the wider market, pushing risk assets down heavily.
For now, though, the miners are betting the future of their business on a new kind of gold rush powered by GPUs, not ASICs.
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence’s Token Security API averaged 717 million monthly calls year-to-date in 2025, with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch, the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B, while derivatives volume peaked the same month at over $4B.
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The collapse marks yet another disappointing Trump family crypto-related investment.
- American Bitcoin (ABTC) tumbled as much as 50% on major trading volume on Tuesday on no apparent news.
- The decline spread to previously hot-handed Hut 8 (HUT), the majority owner of ABTC.
- A check of SEC filings show nearly all major holders are restricted from selling until 2026.
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