HIVE Stock Jumps 25% After AI Research Project Highlights Paraguay GPU Infrastructure

Shares of HIVE Digital Technologies surged nearly 25% on Monday, reaching their highest level in more than seven months after the company highlighted artificial intelligence research conducted using its GPU infrastructure in Paraguay.

The research was carried out by a team from Columbia University, which remotely trained neural networks on HIVE’s computing systems located in Asunción. The study focused on improving the efficiency of large language models and has been submitted to the NeurIPS conference, one of the most influential events in the artificial intelligence industry.

Paraguay Data Center Supports Advanced AI Workloads

According to HIVE, the research demonstrated that its Nvidia A40 GPUs delivered performance comparable to newer hardware for certain AI workloads. Executive Chairman Frank Holmes described the results as a proof of concept showing that advanced AI training can be conducted effectively across long distances.

The project expands on work first announced in March, when researchers began testing latency, throughput and distributed training performance using HIVE’s Paraguay-based infrastructure.

Expansion Plans Strengthen AI Growth Strategy

HIVE currently operates around 300 megawatts of hydro powered infrastructure in Paraguay and is developing an additional 100 megawatts. The company is also planning a 320-megawatt AI gigafactory near Toronto that could eventually support more than 100,000 GPUs.

The latest development follows a recently announced three-year, $220 million AI cloud agreement with Bell Canada and Cohere. The deal includes more than 2,300 Nvidia Grace Blackwell GPUs and is expected to generate approximately $70 million in annual recurring revenue beginning later this year.