Tether, the cryptocurrency stablecoin, has announced a pivot into AI with the purchase of 10,000 Nvidia H100 Tensor Core GPUs in a collaboration with Northern Data Group reported to be worth around $420 million.

As reported by Forbes, a deal has been forged by Tether subsidiary Mamoon into German data cloud provider and bitcoin miner Northern Data.

According to the report, Mamoon will gain a 20 per cent stake into Northern Data, which reportedly plans to rent the chips to AI startups.

Describing data cloud provider Northern Data as a “true pioneer”, Tether said the investment was significant as it “demonstrates its determination” to support emerging technology.

Tether went on to outline that several initiatives it will support in its collaboration with Northern Group include AI, peer-to-peer communications, and data storage solutions, with the chief aim to develop “accessible solutions globally and locally that service many communities already engaged with other Tether products”.

"We are excited about this investment into Northern Data Group as it represents a fresh venture into new technological frontiers," said Tether chief technology officer Paolo Ardoino. "This investment underscores our commitment to responsible growth and innovation while preserving the strength and integrity of Tether tokens’s reserves."

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