Bitcoin miners are exploring new business avenues ahead of the upcoming halving event that will reduce their rewards and amid increased competition from the rising hash rate, according to JPMorgan.

Crypto miners are now providing high-performance computing services to the rapidly evolving artificial intelligence market, which could turn profitable for them, JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report on Thursday. Their diversification into the AI market has at least partly been funded by selling newly or previously minted bitcoins in recent quarters, they added.

Both crypto mining and AI development, including training large language models, require advanced computer chips.

Applied Digital recently launched an AI cloud service and signed a $460 million deal to …