Tether, the leading issuer of the stablecoin USDT, is venturing into the realm of artificial intelligence (AI) with the establishment of a dedicated department. This move comes as Tether seeks to leverage an expansive computing infrastructure provided by a German firm it invested in the previous year.
Presenting itself as a frontrunner in the crypto industry, Tether aims to bolster its AI initiatives through Tether Data. While the company’s press release touts ambitions of innovation and shaping the future of technology, specifics regarding its plans remain sparse.
Highlighted in the announcement are concerns about the monopolization of AI technology by major tech companies, with Tether expressing its commitment to promoting transparency and privacy in AI development. Tether Data’s objectives include the development of open-source AI models to set new standards, integrating AI solutions into existing products to address real-world challenges, and fostering collaboration within the broader ecosystem.
Tether is actively seeking software developers to join its AI department, emphasizing its mission to democratize access to cutting-edge AI models and bolster the development of resilient, decentralized networks. Paolo Ardoino, Tether’s managing director, has hinted at upcoming projects and investments, underscoring the company’s access to substantial AI computing power following a significant investment in one of the leading AI infrastructure operators.
This investment is directed towards the Northern Data Group, which received strategic backing from Tether in September 2023. Northern Data, formerly known as Northern Bitcoin AG, has transitioned from its initial focus on mining to AI computations, leveraging its partnership with Nvidia and embracing novel hardware like the Blackwell, tailored for generative AI.
Details regarding Tether’s investment in Northern Data remain undisclosed, although a noteworthy acquisition of Damoon Limited, a Tether subsidiary, sheds some light on the extent of their involvement. With Northern Data acquiring Damoon for 400 million euros, equivalent to the value of over 10,000 NVIDIA H100 Tresor Core GPUs, Tether solidifies its position as the primary shareholder in Northern Data Group.
While the specifics of Tether’s AI strategy remain ambiguous, its substantial resources, coupled with strategic investments and ties to the crypto market, position the company as a potential leader in AI innovation. Questions linger about Tether’s intentions: will it develop proprietary AI models, expand existing Large Language Models, or integrate AI with blockchain and P2P networks? Despite these uncertainties, Tether’s formidable assets and strategic positioning signify its potential to spearhead advancements in AI.