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Crypto News

Tether Branches Into AI with Northern Data through $427M Nvidia Chip Purchase

Author

Jay Solano

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Tags Editor's Choice / Slider Posts

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1 min
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Author

Jay Solano

Tags

Editor's Choice / Slider Posts

Reading time

1 min
Last update

Author

Jay Solano

Tags

Editor's Choice, Slider Posts

Reading time

1 min
Last update

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Stablecoin giant Tether is stepping into the artificial intelligence (AI) sector through a collaboration with the bitcoin miner and data cloud provider, Northern Data Group. The partnership saw Damoon Designated Activity, a Tether subsidiary, where Northern Data acquired a majority stake in July, making a significant purchase of Nvidia graphic processing units (GPU) worth approximately $427 million.

These chips are slated for deployment via Northern Data’s cloud service, Taiga Cloud, with the intention of offering its services to clients by the end of the fourth quarter. Tether, primarily known for its $83 billion USDT stablecoin, has been progressively diversifying its ventures beyond its primary domain. Earlier in the year, the company invested in bitcoin mining operations in South America and a payment processing entity in Georgia.

The crypto community has often raised concerns about Tether over the years, especially regarding the clarity of its stablecoin reserves and its investment and lending strategies, which have stirred controversy.

Northern Data, which began as a crypto mining company, has now evolved to provide computing power essential for AI-driven data analysis. Following this development, its stock price saw a 2.7% increase.

Paolo Ardoino, Tether’s CTO, expressed enthusiasm about the venture with Northern Data, emphasizing the exploration of new technological avenues. Tether has assured that this investment won’t affect the reserve backing of its stablecoins.