Tether Invests $420M in Nvidia’s H100s
In a recent report, it was revealed that Tether, the stablecoin issuer, has spent $420 million on AI-related GPUs. This investment follows Tether’s entry into the bitcoin mining industry and its decision to hold BTC on its balance sheet.
Partnership with Northern Data
Tether’s purchase of 10,000 Nvidia H100 GPUs was made in collaboration with BTC miner Northern Data. As part of the agreement, Tether will secure a 20% stake in Northern Data. Northern Data’s CEO, Aroosh Thillainathan, believes that investing in the growing AI systems market can be highly profitable.
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The GPU Shortage
Thillainathan stated that acquiring a 2% share of the limited supply of GPUs was a great opportunity, as there is currently a shortage in the market. The GPUs were reportedly purchased through an Irish company called Damoon.
Bitcoin Miners’ Interest in AI-Related Hardware
Bitcoin miners like Hive, Hut 8, and Iris Energy have also shown interest in AI-related GPU hardware. Iris Energy recently invested $10 million to expand its operations by purchasing 248 Nvidia H100s.
Tether’s Announcement and Commitment
Tether officially announced its investment in Northern Data on September 21, expressing confidence in Northern Data becoming the largest independent AI player in Europe. Paolo Ardoino, Tether’s CTO, emphasized their commitment to responsible growth and innovation while maintaining the strength and integrity of Tether’s reserves.
The Demand for Nvidia GPUs
Due to the rise of AI technology, there is a high demand for Nvidia GPUs. The company expects to ship 550,000 units this year. Reports suggest that these GPUs have been sold for over $40,000 on platforms like eBay.
Conclusion: Tether’s Strategic Investment in AI
Tether’s investment in Nvidia’s H100s and its stake in Northern Data demonstrate its interest in the AI market. By leveraging AI-related technologies, Tether aims to continue its responsible growth and innovation in the crypto industry.
