The U.S. Bitcoin mining industry appears to be losing ground in the competition for power as artificial intelligence (AI) companies move aggressively to secure long-term energy infrastructure, according to a new report from GoMining Institutional.

The result of this shift in power demand, driven by AI firms securing energy capacity once used by miners, is a deceleration in domestic hashrate growth and a strategic rethinking among some of the sector’s largest players, according to analysts at GoMining Institutional.

Backed by capital reserves and less sensitive to electricity pricing, AI and high-performance computing (HPC) firms are now increasingly outbidding Bitcoin miners for access to power, data center space, and grid capacity. According to GoMining Institutional’s latest “H1 Bitcoin Mining Market Review and Key Trends” report, the shift is forcing miners to pivot away from expansion and toward new business models.

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