BuzzHPC targets $200M in AI revenue while Big Tech is still burning cash

While the biggest names in tech are burning billions to build AI infrastructure, BuzzHPC is already running close to 80% EBITDA margins and generating real revenue.

Craig Tavares, President and COO of BuzzHPC — a subsidiary of Hive Digital Technologies — joined TheStreet Roundtable to lay out a growth plan that is anything but theoretical.

In an AI infrastructure race littered with money-losing companies chasing hockey stick projections, BuzzHPC is making the case that discipline and signed contracts beat hype every time.

An AI business that's already profitable

Most AI infrastructure companies are in deep investment mode, spending far ahead of revenue. Global AI spending is projected to reach $2.5 trillion in 2026, according to Gartner, with over $400 billion focused on infrastructure alone. Google, Apple, Microsoft, Nvidia, OpenAI, Anthropic, and others have poured billions into data centers, power procurement, and chips — and most are still waiting to make that money back.

BuzzHPC is already making money.

"We are very profitable and close to 80% EBITDA margins. We do believe capital discipline isn't a talking point. It's the reason we're still standing when others aren't,” said Tavares.

For retail investors comparing AI infrastructure plays, 80% margins at this stage of the market is a meaningful differentiator. Tavares credited this to the fact that Hive Digital had already invested the capital when it built its Bitcoin mining centers. Those facilities can be converted into high-performance computing centers to run AI models at a fraction of the cost of building from scratch.

The revenue ramp: $20M to $200M in 12 months

Tavares laid out a revenue trajectory that moves fast — but is grounded in contracts that are already signed.

“We've grown from 20 million AR, we'll be at 35 million AR, and we have a leapfrog to 140 million, then up to 200 million AR. And that's within the next 12 months,” he explained.

He said that these expectations are grounded in already signed contracts.

"It's not a hockey stick fantasy. It's actually a milestone gated ramp tied to all the GPU deployments that we're doing right now and signed contracts."

BuzzHPC recently signed $30 million in AI cloud contracts to accelerate its Tier III data center expansion. The company has also secured capital to execute: Hive Digital completed a $115 million private placement of 0% interest convertible senior notes, with net proceeds earmarked for purchasing Nvidia GPUs and developing data centers to support BuzzHPC's AI cloud business. The zero-interest structure signals institutional confidence in the model.

What BuzzHPC actually builds

BuzzHPC converts electricity and capital expenditure into AI-ready GPU capacity — effectively building what Tavares calls "AI factories."

"For BUZZ HPC, it's where CAPEX meets impact, right? So every megawatt that we converted into AI-ready capacity becomes a platform for dozens of new applications."

Those applications span numerous verticals — medicine, transportation, national security, and more. BuzzHPC operates as part of Canada's sovereign AI infrastructure layer, alongside partners including Bell Canada and Dell.

The Bitcoin mining roots of parent company Hive Digital are not incidental. Years of managing GPU chips and power infrastructure gave BuzzHPC a structural head start on the pivot to AI compute. The data centers were already built. The power contracts were already signed. The operational expertise was already in place. BuzzHPC didn't have to start from zero — it started from a decade of mining operations.