- Tether makes a significant $420M investment in Nvidia’s H100 GPUs.
- The deal was a partnership with German bitcoin miner Northern Data.
- Nvidia H100 chips are in high demand by AI companies.
As the artificial intelligence (AI) craze grips the market, Tether has decided to claim its part of the AI pie. The stablecoin giant has invested substantially in Nvidia’s H100 GPUs, a favorite among AI companies. The deal shows the potential for Bitcoin miners to benefit from the AI surge and the synergies between AI and blockchain tech.
Tether’s Strategic Investment in AI’s GPU
On Wednesday, September 20, 2023, Tether made a massive $420 million purchase of Nvidia’s H100 GPUs. This particular GPU, Nvidia’s H100, has rapidly become a coveted asset in the tech world, especially among AI companies eager to process data efficiently.
Tether acquired these GPUs in a strategic partnership with the German bitcoin miner Northern Data. Thanks to its acquisition of chips, Tether will gain a 20% stake in the miner. The mining firm aims to start a cloud GPU business to serve AI startups.
The broader implications of this investment are many. For one, it positions Tether to benefit from the AI craze gripping the investment world. Since the launch of OpenAI’s ChatGPT, companies in all market segments have tried to leverage AI in their businesses.
Can AI Boost Blockchain?
The convergence of artificial intelligence and blockchain technology presents a myriad of opportunities for both sectors. Tether’s deal with Northern Data also underscores potential synergies between the two emerging industries.
Specifically, crypto miners like Northern Data are in a great position to benefit from the demand for GPUs. Due to the intense computational demands of crypto mining, firms already possess the infrastructure needed to run powerful cloud GPU operations. Moreover, AI computing will diversify the demand for miners.
Blockchain also has other applications for AI. For instance, the technology can solve some issues arising from deepfakes and AI-generated content. Specifically, blockchain, thanks to its transparent and immutable nature, can be leveraged to verify the authenticity of content.
On the Flipside
- Northern Data has been at the center of controversy after a German regulator filed a criminal complaint against its staff in 2022 for alleged market manipulation.
- Tether has its own controversies, ranging from questions about reserves to allegations of manipulating the entire crypto market.
Why This Matters
The partnership between Tether and Northern Data highlights the growing convergence of AI and blockchain technologies. This synergy can lead to innovative solutions and applications that can revolutionize various industries.
Read more about the potential synergies between AI and blockchain:
Davos: Could New Interest in AI Help Boost Blockchain Tech?
Read more about Bybit’s bet on institutions in crypto:
Bybit Joins Paradigm Amid Institutional Push in Crypto