Tether, the leading stablecoin issuer with $83 billion in USDT, is diversifying its portfolio by venturing into the field of artificial intelligence (AI).
This strategic move is being facilitated through its subsidiary, Damoon, which is co-owned by bitcoin mining and data cloud provider, Northern Data Group (NB2). In addition, one of Damoon’s recent initiatives involves a substantial investment in Nvidia chips to bolster generative AI cloud computing.
Damoon’s Significant Nvidia Chip Purchase
Damoon Designated Activity, a subsidiary in which Northern Data Group acquired a majority stake in July, has acquired Nvidia graphic processing units (GPU) worth approximately $427 million (400 million euros).
Moreover, Northern Data will integrate these high-performance chips into its cloud service, Taiga Cloud, and will commence offering access to customers in the latter part of the fourth quarter.
Tether’s Expansion Beyond Stablecoins
Tether, primarily known for its stablecoin USDT, has been expanding its horizons beyond its core business. Moreover, in the current year, the company has made notable investments in BTC mining operations in South America and a payment processor in Georgia. This latest move into AI computing through Damoon signifies Tether’s commitment to exploring new avenues of growth.
Tether’s History of Criticism and Transparency
Tether has faced criticism within the cryptocurrency industry due to concerns about its transparency regarding stablecoin reserves and controversial investment and lending activities. However, despite these challenges, Tether continues to evolve and diversify its business interests.
Northern Data Group, a publicly listed data company, has transitioned from cryptocurrency mining to providing computing for AI-related data processing. Furthermore, this strategic shift has been well-received, with the company’s shares experiencing a 2.7% increase in value following the announcement.
Paolo Ardoino, Tether’s Chief Technology Officer, expressed enthusiasm about the investment in Northern Data Group. Importantly, Tether emphasized that this investment does not impact the backing reserves of its stablecoins, all while maintaining stability and trust in its primary business area.
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