Tether Makes a Splash in the Cloud GPU Market by Acquiring $420 Million Worth of Nvidia Chips to Lease to AI Startups
Tether Group has purchased a 20% interest in Bitcoin miner Northern Data for $420 million, the equivalent of purchasing 10,000 Nvidia H100 GPUs.
Purchasing a 20% interest in the controversial Bitcoin miner Northern Data, the company spent $420 million for 10,000 Nvidia H100 GPUs.
Nvidia’s H100 is one of the most sought-after commodities in the IT industry at $40,000 per chip. Data-crunching businesses also like these GPUs as their primary processors; therefore they are in high demand among artificial intelligence startups.
Tether’s investment in this space, via the purchase of these GPUs, exceeds that of several whole countries. Tether Group’s stablecoin was designed to be backed 1:1 by US dollars for each of the 86.4 billion USDT presently in circulation, therefore this agreement represents a major deviation from that plan. For making a misleading promise in 2020 that it was completely backed in dollars, the CFTC fined the company $41 million.
Damoon, an Irish front business, will be used to purchase the GPUs on behalf of Tether. In the end, Northern Data will have a 70% interest in Damoon after exchanging 20% of its equity for stock.
CEO of Northern Data Aroosh Thillainathan said the sale was a good chance to get 2% of the most sought-after GPU allotment while supplies last.
With this initiative, Northern Data may overtake key competitors like Amazon Web Services, Microsoft Azure, and Oracle Cloud to become the biggest cloud GPU operator in Europe.