In a significant move, Russian crypto mining firm Intelion has announced a $135 million investment in artificial intelligence (AI), marking a major expansion into the AI sector. The company, one of the largest industrial mining operators in Russia, plans to use the funds to purchase server equipment for AI computing and spin off its high-performance computing business into a subsidiary, Intelion Cloud.

The new subsidiary will focus on developing a group of companies in the AI field and providing clients with access to high-performance computing power. Intelion Cloud will also offer per-second pricing options for AI firms who need to rent servers, making it an attractive option for companies looking to leverage AI technology.

The investment is part of Intelion's plans to expand its data center operations in the Samara Oblast, a region known for its oil refining and petrochemical industries. The company has already begun construction on a new data center, which is expected to come online in the fourth quarter of 2024. Additionally, Intelion has committed to spending an additional $48.2 million on the construction of the data center over the next two and a half years.

The move into AI is seen as a strategic play by Intelion, as the company looks to diversify its revenue streams and capitalize on the growing demand for AI computing power. The Russian government has also been supportive of the move, with officials stating that they support the recognition of mining as a form of entrepreneurship.

The investment is not the only significant move by Intelion in recent months. In February, the company announced plans to build a new 100 MW data center in the southern republic of Buryatia, marking a major expansion into the region. The company has also been working to build its data centers outside of more popular Bitcoin industry hubs such as Irkutsk, where the climate is hotter and electricity fees are higher.

The move into AI is seen as a major opportunity for Intelion to increase its revenue and expand its operations. The company's CEO, Maxim Vyaznikov, stated that the investment will help the company create and maintain large-scale infrastructure designed for the future, and will also help recoup investments due to the high current demand for computing power.

The investment is also seen as a major boost for the Russian crypto mining industry, which has been growing rapidly in recent years. The industry has been driven by the country's low electricity costs and favorable regulatory environment, making it an attractive location for miners.