
Canaan Inc. (CAN), a Singapore-based manufacturer of bitcoin mining equipment, has announced its decision to cease operations in its artificial intelligence (AI) semiconductor sector. This move is aimed at refocusing the company on its core crypto operations.
Despite a trend among bitcoin miners to diversify revenue streams through AI, Canaan’s foray into AI chips proved economically unviable. The AI division contributed a meager $900,000 in revenue against total earnings of $269.3 million in 2024, while accounting for 15% of the company’s operating expenses.
In a statement, CEO Nangeng Zhang expressed, “Doubling down on our core strengths in crypto infrastructure and bitcoin mining is the most strategic path forward.”
The decision is part of a broader strategy to concentrate on bitcoin mining and related products, anticipating significant cost reductions following the shutdown.
Before announcing the exit, Canaan had been exploring various options for its AI unit, including potential sales, since March 2022. The company expects to conclude the transitioning process in the coming months.