Tether Group Invests $420 Million in Nvidia GPUs for New AI Strategy
Tether Group, the company behind the popular stablecoin Tether, has made a significant investment in the cloud GPU market. The firm has spent $420 million to acquire 10,000 Nvidia H100 GPUs and has secured a 20% stake in Bitcoin miner Northern Data. Nvidia’s H100 GPUs are highly sought after and are commonly used by AI startups and data-crunching companies. Tether’s investment in these GPUs surpasses the investments made by some entire nations. This move represents a departure from Tether’s usual operations as it seeks to diversify into new sectors.
Tether’s Acquisition of Nvidia GPUs
Tether will purchase the Nvidia H100 GPUs through an Irish shell company called Damoon. In return, Northern Data will receive a 70% stake in Damoon and shares equivalent to 20% of its ownership. Northern Data CEO Aroosh Thillainathan believes this deal is a great opportunity for his company to access a significant portion of the limited GPU supply. This strategic move could position Northern Data as Europe’s largest cloud GPU operator, competing against major players like Amazon, Microsoft Azure, and Oracle.
The Booming GPU Market
Tether plans to rent out the acquired GPUs to AI startups, following the footsteps of other mining companies that have converted GPUs for rental purposes. These chips were previously used for Ethereum mining but became obsolete after the protocol’s transition to proof-of-stake consensus in 2022. The demand for GPUs has surged due to the growing popularity of AI applications. Nvidia’s CEO Jensen Huang stated that generative AI is thriving, leading to accelerated computing and a new era in computing. Nvidia has seen impressive revenue growth as a result.
Hot Take: Tether Dives into AI with Nvidia GPU Investment
Tether’s $420 million investment in Nvidia GPUs marks a significant shift for the stablecoin giant. By entering the AI sector, Tether is expanding its reach and exploring new opportunities. This move also highlights the increasing convergence between the crypto and AI industries. With its acquisition of high-demand GPUs, Tether aims to cater to the needs of AI startups while capitalizing on the booming GPU market. As Tether continues to adapt and diversify, it will be interesting to see how this investment plays out and impacts the company’s future.
By
By
By
By