Tether, the company behind the popular stablecoin USDT, has made a strategic investment in European crypto mining firm Northern Data, marking its entry into the AI tech space. According to media reports, Tether has acquired 10,000 Nvidia H100 GPUs, valued at $420 million.
In a news release, Tether announced that the investment was made through its subsidiary Damoon. However, the company did not disclose the exact amount of the investment and clarified that Forbes had misinterpreted the company’s stake size in the deal.
Tether intends to collaborate with Northern Data on various AI initiatives, as well as peer-to-peer communications and data storage solutions.
Global Demand for AI GPUs
The Nvidia H100 is a crucial computer chip in the market, particularly in the AI sector. Priced at $40,000, the H100 is in high demand due to its exceptional data processing capabilities. This investment positions Tether as a significant player in the AI industry.
Forbes had reported that Tether’s investment of $420 million secures a 20% stake in Northern Data’s AI business. With this investment, Northern Data plans to lease these sought-after chips to startups in the AI industry.
By partnering with Northern Data, Tether is on track to become the largest independent AI player in Europe. Notably, the reported investment surpasses the budgets allocated by some countries for similar AI initiatives. The British government, for example, had planned to spend $120 million on GPUs, while Saudi Arabia has acquired 3,000 Nvidia H100 chips for its AI projects.
Tether, the company behind USDT, has made a strategic investment in crypto mining firm Northern Data, entering the AI tech space. Tether has reportedly purchased 10,000 Nvidia H100 GPUs for $420 million. This investment positions Tether as a major player in the AI industry in Europe. The company plans to collaborate with Northern Data on AI initiatives, peer-to-peer communications, and data storage solutions.
What is Tether?
Tether is the issuer of the USDT stablecoin, which is pegged to the US dollar. It is one of the most widely used stablecoins in the cryptocurrency market.
What is Northern Data?
Northern Data is a European crypto mining firm that specializes in high-performance computing and provides infrastructure for AI and blockchain applications.
What are Nvidia H100 GPUs?
Nvidia H100 GPUs are computer chips known for their exceptional data processing capabilities. They are highly valued in the AI startup world and are in demand for heavy-duty data processing tasks.
How does this investment make Tether a major player in the AI industry?
By acquiring 10,000 Nvidia H100 GPUs, Tether is positioning itself as a significant player in the AI industry. The company aims to collaborate with Northern Data on various AI initiatives and solutions, which will contribute to its growth and presence in the AI space.