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Chronicles

The story behind the story

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Intel forms a Custom Compute Group to build blockchain hardware and plans to ship cryptocurrency mining chips in 2022; Block, Argo, and Griid are customers

Paul Alcorn / Tom's Hardware :

Tom's Hardware Paul Alcorn

Context & Ripple Effects

Intel's dedicated blockchain unit extends a longer custom-silicon posture: related coverage says custom designs were already expected to account for more than half of its public-cloud chip sales in 2015. The new group applies that model to mining customers rather than general-purpose cloud buyers.

The announcement was quickly followed by Bonanza Mine ASIC performance and power details, making the effort a defined product program rather than only an organizational commitment.

First-order effects

  • Block, Argo, and Griid gain Intel as a named prospective source of mining-specific chips, while Intel creates a customer-facing unit focused on blockchain hardware.
  • Intel's Custom Compute Group becomes responsible for translating its custom-chip capability into a product line scheduled to ship in 2022.

Second-order effects

  • A new Intel supply option gives the named mining customers more leverage in sourcing specialized hardware, a dynamic captured by Intel's initial accelerator-chip announcement.
  • Block's later work on its own mining chip underscores that large mining buyers can pursue both external supply and in-house silicon design rather than depend on one hardware vendor.

Third-order effects

  • The subsequent discontinuation of Intel's Blockscale ASIC line shows that a bespoke-chip offering can be difficult to sustain as a standalone business even after it wins named customers.
  • If mining buyers continue to design chips internally while seeking outside fabrication, the market shifts toward second-source strategies and foundry access rather than durable reliance on any one ASIC vendor.

The trend: Cryptocurrency mining hardware is becoming a second-source compute market in which major buyers mix merchant ASICs with custom-silicon programs.

Discussion

  • @pgelsinger Pat Gelsinger on x
    Introducing AXG's Custom Compute Group. Stay tuned for more about Intel's vision & commitment to the blockchain space. https://www.intel.com/...
  • @joemccann @joemccann on x
    Smart move for @intel to partner with @griid to help build out their Blockchain and New Custom Compute Group. Nice work ⁦@treykelly3⁩ 🙌🏼 https://www.intel.com/...
  • @intelnews @intelnews on x
    Intel is launching an ultra-low-voltage, energy-efficient #blockchain accelerator chip, expected to perform over 1000x better per watt than GPUs for SHA-256 based mining, that starts shipping later this year. https://www.intel.com/...
  • @pavolrusnak Pavol Rusnak on x
    What kind of twisted logic do you need to announce a #Bitcoin mining chip and not mention Bitcoin even once in your PR article? But of course, there is blockchain, metaverse and web 3.0 all over the place. 🤡 https://www.intel.com/...
  • @perryhtee Perry Hothi on x
    If you build it, they will come...... @intel https://www.intel.com/...
  • @cazenove_uk @cazenove_uk on x
    This is the news we've been waiting for @ArgoBlockchain. @intel blockchain accelerator will ship later this year and they are engaged directly with customers that share their sustainability goals, including @ArgoBlockchain. Just in time to fill Helios! https://www.intel.com/...
  • @argoblockchain Argo on x
    Excited to be one of @Intel's first customers for their upcoming ASIC. Efficiency, innovation, and sustainability - a great combination. 💥 #ARB $ARBK https://www.intel.com/...
  • @mikk2k2 Mike Wainwright on x
    BREAKING: This is a good one...looks like @ArgoBlockchain and @intel are working together 😍 Source: https://www.intel.com/... #ARB $ARBK $ARBKF
  • @ryanshrout Ryan Shrout on x
    Exciting to see us lean into new areas like the blockchain accelerator just announced today! https://www.intel.com/...
  • @zbruceli @zbruceli on x
    Will @intel bring about a bonanza of $BTC mining power at low cost? Will it be able to compete effectively against their much smaller yet laser focused rivals like @BITMAINtech ? https://www.tomshardware.com/ ...