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Artificial intelligence is everywhere these days. From think-piece articles debating whether we should fear AI to AI-focused startups launching every other day, it’s impossible to escape the buzz. Even tech giants like Google are pivoting, integrating AI into tools like search and Gmail. AI has seamlessly slipped into our everyday lives and shows no signs of slowing down.
Companies like OpenAI have raised billions of dollars at mind-boggling valuations, and Nvidia briefly became the world’s most valuable company thanks to AI’s demand for its graphics cards. This frenzy has led to a data center boom, with Google, Meta, AWS and Microsoft all announcing new data center builds in Indiana over the past year.
Even Bitcoin-mining companies like Core Scientific and Iris Energy have jumped on the bandwagon by converting their Bitcoin-mining facilities to high-performance computing and AI-friendly infrastructure.
So, is my company, Megawatt, next in line to pivot to AI? Short answer: nope.
Are we crazy not to capitalize on this megatrend? Potentially, yes. But I would rather look back on this column a few years down the road and laugh than scrap the vision for Megawatt in favor of a splashy headline about pivoting to AI.
Think back to the dot-com bubble of the late 1990s and early 2000s. As the saying goes: History doesn’t repeat itself, but it often rhymes. Back then, companies were tripping over themselves to “pivot to the web,” with many making millions of dollars by tacking “.com” onto their names.
In the long run, the internet proved to be revolutionary, with companies like Google and Amazon born during this time. However, in the short run, the majority of these pivots turned out to be little more than gimmicks, with most companies closing up shop shortly after the bubble burst.
One such gimmick was Pets.com. Founded in 1998 with the promise of being an online storefront for pet supplies, it rode the internet wave to go public in early 2000, experienced a brief stock surge, then went bankrupt that same year.
Just like the internet, AI is here to stay, and there will certainly be winners. However, chasing the trend is just as foolish as ignoring it altogether.
Interestingly enough, the founder of one of the dot-com era’s long-term successes, Jeff Bezos, has a great quote about this approach: “Be stubborn on your vision, but very flexible on the details.”
I took Bezos’ advice to heart with Megawatt. I went through a methodical process of studying different industries and identifying problems that intrigued me before eventually deciding to focus my efforts on building a Bitcoin mining company.
I didn’t make this decision lightly. It came after years of learning about Bitcoin, energy markets and the intersection of the two. While I’m certainly flexible on the details of how we execute our vision, I remain stubborn on the core mission of Megawatt.
That mission is threefold:
Rebuild the Rust Belt: Build mining sites in rural areas with dormant electrical infrastructure. Bitcoin mining has the potential to revitalize the Rust Belt by breathing new life into existing and often underused energy systems.
Balance the energy grid: Design software that leverages Bitcoin mining’s flexible load to balance the energy grid. This involves consuming energy when demand is low and powering down during times of peak demand or inclement weather. By doing so, we help stabilize the grid and make better use of available resources.
Harness stranded energy: Intermittent energy sources like wind and solar farms often generate excess power that needs to be curtailed. Our flexible-load software and hardware harness this stranded energy, alleviating grid congestion and making renewable energy projects more financially viable.
While I’m dedicated to our vision, I understand the importance of adaptability. Our approach isn’t static; we’re continually evolving based on customer feedback and opportunities we see in the market.
Does this mean we’re ignoring AI? Absolutely not. We use AI in our everyday lives and have been actively leveraging it to automate mundane tasks (serial number extraction, maintenance reports, etc.) for months. However, you won’t see us converting our facilities to house AI servers anytime soon. We’re committed to our Bitcoin-centric strategy and won’t abandon our approach for a splashy headline or out of fear of missing out on a trend.
Saying “no” to opportunities is certainly difficult, but sometimes the smartest decision is the one you don’t make.
Will this decision prove right in the long run? Who knows?! Maybe in a few years, I’ll read this column and laugh, surrounded by my AI overlords. But for now, I’m OK with potentially being wrong. After all, being stubborn doesn’t mean being inflexible—it means being persistent in the face of challenges and skepticism.•
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Rekhter is co-founder and CEO of Megawatt.
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