Tether in $427 (US) Nvidia GPU Chip Buy-up with AI Partnerships

Stablecoin giant Tether is expanding its horizons by delving into the realm of artificial intelligence (AI), a move facilitated through a subsidiary, Damoon Designated Activity, co-owned with bitcoin miner and data cloud provider, Northern Data Group (NB2).

The subsidiary, Damoon Designated Activity, witnessed Frankfurt-based Northern Data acquiring a controlling stake in July. Subsequently, an investment of approximately 400 million euros ($427 million) was made to procure Nvidia graphic processing units (GPU), as disclosed by the German firm in a press release.

Northern Data plans to incorporate these chips within its cloud service, Taiga Cloud, aiming to extend access to its customers by the end of the fourth quarter. This initiative marks Tether’s ongoing endeavors to explore ventures beyond its foundational business model. With a formidable $83 billion USDT, Tether is the leading stablecoin company and has previously diversified its investments into BTC mining operations in South America and a payment processor in Georgia.

Tether has long faced scrutiny and criticism from the crypto community, primarily due to perceived inadequacies in transparency regarding its stablecoin reserves and its contentious investment and lending strategies. Northern Data, a publicly traded data company, has broadened its scope from crypto mining to offering computational power for processing AI-related data. This diversification resulted in a 2.7% increase in its shares on Thursday.

“This investment signifies our commitment to venturing into uncharted technological domains and is a testament to our belief in the potential of innovative tech solutions.”

Paolo Ardoino, Tether’s Chief Technology Officer

This collaboration and investment underscore the evolving landscape of the crypto industry, with major players like Tether exploring multidisciplinary approaches and diversifying their portfolios to include cutting-edge technologies like AI. The integration of AI and blockchain technologies could potentially lead to the development of advanced solutions and services, catering to a wider range of applications and industries.

The venture also highlights the growing synergy between different technology sectors, with companies like Northern Data expanding their services to include AI-related computing power, thereby contributing to the advancement of AI research and development. The partnership between Tether and Northern Data is a reflection of the dynamic and interconnected nature of the modern technology ecosystem, where collaboration and innovation are key to addressing the complex challenges and opportunities of the digital age.