Crypto Billionaire Novogratz: 'AI Is the New Arms Race'

Galaxy CEO Mike Novogratz has opined that artificial intelligence is "the new arms race." 

This comes after the recent announcement of  The Stargate Project, the new company that is seemingly poised to become the biggest AI infrastructure project to date. OpenAI has teamed up with Softbank, Oracle, and UAE-based tech-focused investment company MGX in order to fund the venture, which has already managed to secure $100 billion. The joint venture has pledged a staggering $500 billion for AI infrastructure development in the US. 

The venture, which is currently dominating headlines in the mainstream media, has already been compared to the Manhattan Project due to its massive scale.  

According to Novogratz, this is "just the start." The billionaire believes that more than $1 trillion will be spent on US data centers over the next few years. 

Pivoting to AI 

Novogratz believes that the massive demand for infrastructure is now driving transformation among Bitcoin miners. 

In its recent report, Galaxy stated that large-scale Bitcoin mining firms could boost the value of their assets by transitioning into the AI market. 

Miners who pivot to AI could see such benefits as predictable and high cash flow streams, diversification of cash flows as well as access to deep capital markets. 

However, due to the existing infrastructure not being fully suitable for mining, there are several major upgrades that miners need to perform. 

These include networking infrastructure that handles fast execution of workloads as well as advanced cooling solutions.