Stablecoin Issuer Tether Ventures Into AI With Northern Data in $427M Nvidia Chip Splurge

Damoon, a Tether subsidiary in which Northern Group acquired a stake earlier this year, has purchased $427 million of Nvidia chips for generative AI cloud computing.

AccessTimeIconSep 21, 2023 at 3:09 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Stablecoin issuer Tether said it is branching into artificial intelligence (AI) through a subsidiary jointly owned by bitcoin (BTC) miner and data cloud provider Northern Data Group (NB2).

Damoon Designated Activity, in which Frankfurt-based Northern Data acquired a majority stake in July, bought some 400 million euros ($427 million) worth of Nvidia graphic processing units (GPU), the German company said in a press release.

The chips will be deployed through Northern Data’s cloud service, Taiga Cloud, with plans to offer access to customers starting late in the fourth quarter.

The development is the latest example of Tether, the largest stablecoin company with its $83 billion USDT, venturing outside of its original business domain. This year, the firm has invested in BTC mining operations in South America and a payment processor in Georgia.

For years, Tether has been criticized within the crypto industry for insufficient transparency about its stablecoin reserves and controversial investment and lending maneuvers.

Northern Data is a publicly listed data firm that has diversified from crypto mining into providing computing power for AI-related data crunching. The shares rose 2.7% Thursday.

“We are excited about this investment into Northern Data Group as it represents a fresh venture into new technological frontiers,” Paolo Ardoino, Tether's chief technology officer, said in a statement.

Tether said the investment does not impact the backing reserves of its stablecoins.

Edited by Sheldon Reback.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.