Tether Invests Billions in AI and Decentralization to Challenge Tech Giants

Tether Invests Billions in AI and Decentralization to Challenge Tech Giants

Tether, the most significant stablecoin producer by market value, is branching out to try to make a name for itself in the growing field of artificial intelligence (AI). In a recent interview with WIRED, Paolo Ardoino, CEO of Tether, talked about the company’s big plans to put a lot of money into brain-computer interfaces and autonomous technologies. This will help the company compete with tech giants like Amazon and Microsoft.

Tether’s Vision: Beyond Stablecoins

Ardoino said that Tether’s significant earnings, which have been built up over the last two years because interest rates have been going up, have given the company the money it needs to try new investment possibilities. He said that Tether’s approach is based on the ‘ethos of decentralization’ and financial freedom that made Bitcoin what it is today

Ardoino said, “The AI landscape is becoming heavily politicized.” He hinted that decentralization might be able to provide a much-needed balance. But Tether’s venture capital method will be different from the norm. The company isn’t going after high-risk, high-reward opportunities. Instead, it’s focused on projects that fit with its vision of technological freedom and interdependence.

Tether’s Strategic Reinvestment in AI and Decentralized Technologies

Ardoino said that Tether doesn’t plan to give out dividends but will instead put more than 90% of its income back into projects that share its values. This strategic reinvestment shows that Tether is serious about supporting innovation in areas that might not normally get venture capital funds.

Tether started a new AI section in March, whose only job is to make open-source AI models. This project is part of a bigger plan that started when the company invested in Northern Data in 2023. Its goal is to work with other companies to add AI to goods that solve problems in the real world.

Northern Data is a German company that used to mine cryptocurrency but now provides computing power for AI-driven data research.

Concerns have been raised about the risks of these investments, but Ardoino stressed that Tether’s method includes careful research. Besides telling me that Tether would invest in good companies, he also promised that the company would be actively supported and managed if needed.