Home / News / Crypto / Tether / Tether Beyond Crypto: New Division Wants to Democratize AI
3 min read

Tether Beyond Crypto: New Division Wants to Democratize AI

Published March 28, 2024 11:26 AM
Teuta Franjkovic
Published March 28, 2024 11:26 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Tether is venturing into AI with a new division, focused on developing open-source AI models.
  • Tether data prioritizes innovation, accessibility, transparency, and privacy in its AI development.
  • A UN report linking Tether to money laundering sparked a surge in searches and potentially led to investor wariness.

Tether is launching  a new division called Tether Data, which is focused on artificial intelligence (AI) initiatives.

This division aims to pioneer the development of open-source, multimodal AI models. It will also lead collaborations to integrate AI into products.

Tether Expands with Global Hunt for Top AI Talent

Tether Data is also starting a global recruitment  drive for top talent to join its AI division.

The job listings for Tether data highlight the division’s ambitions to lead in the development of next-generation open AI models.

This initiative is yet another part of Tether’s growing range of business sectors, which includes divisions dedicated to energy and education.

Stablecoin Giant Makes Big Bet on AI

Tether’s primary focus  is on issuing stablecoins, with its USDT stablecoin commanding about 70% of the total stablecoin market.

The company has also reported significant growth, with a net profit of $2.85 billion in the last quarter of 2023, largely attributed to the interest earned on its reserves.

Tether CEO Paolo Ardoino has emphasized  the company’s commitment to artificial intelligence through its investment in Northern Data Group, allocating €575 million euros ($623 million) in debt financing.

Its involvement with Northern Data Group, known for its data center operations, positions Tether strategically in the AI development sector.

UN Report Links Tether to Money Laundering, Searches Soar

A UNODC report  has led to increased attention on Tether, highlighting its potential use in illicit activities, such as money laundering. Because of this, the number of Google searches for Tether has shot up, with a 310% increase in the past week alone.

The report’s findings suggest a reassessment of USDT’s standing in the crypto community.

As a result, investors seem to be distancing themselves from Tether, favoring the likes of Bitcoin, Ethereum, and Cardano. A study of TikTok content from September 2023 noted a decline in Tether’s mention in investment advice, suggesting retail consumers were also cooling off on USDT.

Was this Article helpful? Yes No