Activist fund Starboard urges Riot to pivot to AI business

Activist fund Starboard Value is urging Riot Platforms to expand its artificial intelligence (AI) and high-performance computing (HPC) infrastructure business, arguing the move could create up to $21 billion in value. According to The Block, Starboard stated in a report that Riot has a significant opportunity to generate between $9 billion and $21 billion by utilizing its strategic assets in Texas for AI and HPC workloads, which would put the company in a favorable position to attract clients. The fund warned that if Riot fails to quickly capitalize on the growing demand for AI infrastructure, it could become a takeover target, adding that the company is falling behind its competitors.