Canaan Inc., a leading blockchain chip company, faces significant challenges in its AI transformation. Known for pioneering ASIC-based Bitcoin mining machines, Canaan has ventured into AI chip development, notably with the Kendryte K210 for facial recognition. However, transitioning from crypto mining to AI involves hurdles like intense competition from established AI chipmakers, high R&D costs, and a volatile crypto market impacting revenue stability. Strategic partnerships, such as with Cathay Tri-Tech and Northern Data, aim to bolster AI capabilities, but scaling AI applications remains complex due to technical and market uncertainties. Canaan’s pivot to AI demands innovation and adaptation to stay competitive in a rapidly evolving industry, while balancing its core blockchain expertise with emerging AI opportunities.