Tether has invested $420 million in 10,000 Nvidia H100 graphics processing units (GPUs) as part of a strategic deal with Northern Data, a German Bitcoin miner. The deal, which was announced on September 20, 2023, will give Tether a 20% stake in Northern Data.
The investment comes at a time of soaring demand for AI-related GPUs, which are used to train and deploy large language models and other AI applications. In August, Iris Energy, another Bitcoin miner, announced that it had acquired 248 Nvidia H100s.
Tether's investment in Northern Data is seen as a way for the company to gain exposure to the growing AI market. Northern Data plans to use the GPUs to build out its AI cloud computing platform.
"We are excited about this investment into Northern Data Group as it represents a fresh venture into new technological frontiers," said Paolo Ardoino, Tether's chief technology officer. "This investment underscores our commitment to responsible growth and innovation while preserving the strength and integrity of Tether tokens' reserves."
The investment is also seen as a sign of Tether's confidence in Northern Data. Northern Data is a publicly traded company on the Frankfurt Stock Exchange. It operates data centers in Germany, the United States, and Canada.
The deal is also a boon for Nvidia, which has been struggling to meet demand for its GPUs due to a global chip shortage. Nvidia is expected to ship around 550,000 H100 GPUs in 2023.
Tether's investment in AI-related GPUs is a significant development for the cryptocurrency industry. It shows that Tether is looking to invest in new technologies and that Bitcoin miners are seeing AI as a new growth opportunity.
Implications of Tether's Investment
Tether's investment in AI-related GPUs has several implications for the cryptocurrency industry.
First, it shows that Tether is looking to invest in new technologies. Tether is already a major player in the cryptocurrency space, but its investment in AI-related GPUs shows that it is looking to expand its reach and influence.
Second, it shows that Bitcoin miners are seeing AI as a new growth opportunity. Bitcoin mining is a competitive business, and miners are constantly looking for new ways to improve their profitability. Tether's investment in Northern Data shows that miners believe that AI has the potential to be a new source of revenue.
Third, it could lead to increased adoption of AI-related technologies in the cryptocurrency industry. Tether is one of the most well-known and respected companies in the cryptocurrency space. Its investment in AI-related GPUs could lead to other companies in the industry following suit.
Overall, Tether's investment in AI-related GPUs is a positive development for the cryptocurrency industry. It shows that Tether is looking to invest in new technologies, that Bitcoin miners are seeing AI as a new growth opportunity, and that it could lead to increased adoption of AI-related technologies in the cryptocurrency industry.
