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.
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.
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.
BY: Krisztian Sandor
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Edited by Sheldon Reback.