1 year ago
According to a report, Tether, the largest stablecoin issuer by marketplace capitalization, has invested $420 cardinal successful 10,000 Nvidia H100 graphics processing units (GPUs). This quality emerges during a clip of surging request for artificial quality (AI). It besides comes aft Iris Energy reported successful August that its bitcoin mining cognition acquired 248 Nvidia H100s.
Tether Splurges $420M connected Nvidia’s H100s, Secures Stake successful Northern Data
On September 20, 2023, Forbes unit contributor Iain Martin reported that Tether utilized immoderate of its superior to acquisition AI-related GPUs. This acquisition followed Tether’s announcement that it was entering the bitcoin mining manufacture and holding BTC connected its equilibrium sheet.
Martin’s nonfiction indicated that Tether’s concern successful the 10,000 Nvidia H100 GPUs was portion of an statement with the BTC miner Northern Data.
The statement volition supply Tether with a 20% involvement successful Northern Data. Investing successful the increasing AI systems marketplace could beryllium rather profitable, said Northern Data’s CEO, Aroosh Thillainathan.
Thillainathan told Forbes that the woody was a “was a large accidental to person 2% of the hottest GPU allocation disposable arsenic everyone is moving abbreviated connected GPUs.” Martin’s study alleges the GPUs were bought done an Irish institution called Damoon.
“Northern Data volition instrumentality a 70% involvement successful instrumentality for shares equivalent to 20% of its ownership,” the study states. Bitcoin miners, captivated by the AI surge, person been exploring AI-related GPU hardware.
Miners specified arsenic Hive, Hut 8, and Iris Energy are among those reportedly making specified ventures. In precocious August, Iris announced it invested $10 cardinal to bargain 248 Nvidia H100s to grow its operations.
Tether did announce the concern the pursuing time connected September 21, noting that it believes Northern Data is “set to go the biggest autarkic AI subordinate successful Europe.”
“We are excited astir this concern into Northern Data Group arsenic it represents a caller task into caller technological frontiers,” Paolo Ardoino, Tether’s main exertion officer, wrote.
Ardoino added:
This concern underscores our committedness to liable maturation and innovation portion preserving the spot and integrity of Tether tokens’s reserves.
Given the AI upswing, request for Nvidia GPUs has skyrocketed, with the institution anticipating shipping 550,000 units this year. Some reports suggest that these GPUs person fetched prices implicit $40,000 connected Ebay.
The outgo of these AI-centric GPUs tin fluctuate based connected their packaging and the quantity bought. Nvidia does not publically database prices for its H100 SXM, H100 NVL, and GH200 Grace Hopper models.
What bash you deliberation astir Tether’s investment? Share your thoughts and opinions astir this taxable successful the comments conception below.
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