Using a company jointly owned by bitcoin (BTC) miner and data cloud provider Northern Data Group (NB2), stablecoin issuer Tether announced that it is foraying into artificial intelligence (AI).Nvidia graphic processing units (GPU) were purchased by Damoon Designated Activity, in which Frankfurt-based Northern Data acquired a controlling stake in July, for over 400 million euros ($427 million), according to a press release from the German business.
The chips will be made available through Northern Data’s cloud platform, Taiga Cloud, with plans to start granting users access at the end of the fourth quarter.The recent development shows Tether, the largest stablecoin corporation with $83 billion USDT in market capitalization, branching out beyond its core market.The company has invested in Bitcoin mining facilities in South America this year, as well as a payment processor in Georgia.
Tether has been criticized within the cryptocurrency community for years because to its lack of transparency on its stablecoin reserves and questionable lending and investment practices.A publicly traded data company called Northern Data has shifted beyond cryptocurrency mining to offer computing capacity for AI-related data processing.Shares increased 2.7% on Thursday.
“We are excited about this investment into Northern Data Group as it represents a fresh venture into new technological frontiers,” Paolo Ardoino, Tether’s chief technology officer, said in a statement.
As far as Tether’s stablecoins’ underpinning reserves are concerned, the investment has no effect.