Written by: Chloe, PANews
Tether CEO Paolo Ardoino revealed Tether's latest local artificial intelligence Local AI development kit at the Plan ₿ event in Lugano, Switzerland, on October 26. This new type of AI development kit focuses on user privacy and is powered by peer-to-peer technology.
A prominent feature of Local AI is its versatility, allowing developers to run written code on various devices, from low-cost mobile phones to high-end smartphones, laptops, or large systems equipped with H100 processors. Additionally, the technology can be applied to multiple devices, including smart refrigerators and automotive entertainment systems.
In March this year, Tether announced the establishment of a new artificial intelligence department, 'Tether data', aimed at advancing its entry into the AI field, with the goal of building the next generation of open AI models. Led by Paolo Ardoino, the newly established AI department Tether data focuses on developing 'open-source, multi-modal AI models'. This significant initiative reflects Tether's commitment to enhancing the accessibility and efficiency of AI and promoting AI and peer-to-peer technology.
The launch of Local AI aims to break through the application scope of traditional computing devices.
At the recent Plan ₿ event in Lugano, Switzerland, Ardoino demonstrated how Local AI transcends the application scope of traditional computing devices. The software development kit (SDK) could eventually be implemented in smart appliances, including refrigerators and automotive entertainment systems, highlighting its wide potential applications.
Local AI particularly emphasizes 'local' computing, meaning AI computations are completed on the user's own device, utilizing P2P (peer-to-peer) technology to allow direct data exchange between devices.
Traditional network architecture has each image, website, or application stored on a server, with each server having its own IP address. When we browse the web, we send requests to the server through the IP address, which means that the server controls the ownership of the user.
P2P means that each user on the network is responsible for storing all or part of all data. In addition to being able to initiate requests to other IP addresses, they must also handle requests from others, effectively acting as their own server. This is also Tether's goal in promoting AI and peer-to-peer technology.
A key feature of Local AI is its ability to load and store model weights and fine-tuning data within a P2P framework. This approach ensures that users' personal sensitive information remains secure and reduces reliance on central servers. At the Plan ₿ event, Ardoino demonstrated a fully local and privacy-focused translation application that can run on any device, avoiding sharing personal data with third parties, and is compatible with various models (such as Marian and Llama). Additionally, the foundation of Local AI is based on the open-source project 'holepunchto/bare', which plays a crucial role in its structure.
Assuming a user is using a translation application developed on the Local AI SDK, the application can directly obtain updated language models from other users, and the user's personal device can share optimized translation results directly with other devices. All this information exchange is encrypted and does not require a central server.
Finally, Tether plans to release the Local AI SDK as open-source software after completing comprehensive testing. This move will benefit developers and communities interested in AI and privacy-related technologies, marking Tether's continued expansion of its AI technology products beyond just stablecoin services.
Last year, Tether accumulated computing power capital by purchasing chips, and this year established a department to expand its AI business.
In 2023, Tether's annual net profit reached $6.2 billion. Last September, Tether made a significant investment in AI hardware, spending $420 million to purchase 10,000 Nvidia H100 GPU chips, each worth about $40,000, accounting for approximately 2% of Nvidia's total annual shipment of 550,000 H100 GPU chips.
At that time, this deal was part of Tether's collaboration with Bitcoin miner Northern Data Group, where Northern Data could obtain a large number of H100s, and Tether would receive 20% of Northern Data's shares. Forbes also mentioned that Northern plans to lease these graphics cards to AI startups that need a lot of computing power, potentially making Northern Data the largest GPU operator in Europe outside of Amazon, Microsoft Azure, and Oracle.
In March this year, Tether announced the establishment of the Tether data department, focusing its AI business expansion on several key areas. First, it aims to develop open-source multi-modal AI models, establish new industry standards, and promote innovation and accessibility in AI technology. In a WIRED interview, Ardoino mentioned, 'The concept of decentralization can be applied to different fields, such as AI. We have already seen AI being heavily politicized. I also believe it is very important to have a role independent of traditional tech companies like Amazon, Microsoft, and Google.'
Secondly, Tether data will seamlessly integrate AI solutions into market products, using technology to address real-world challenges. Finally, by actively participating in community contributions, Tether data is committed to advancing the open AI field while showcasing its innovative projects.
With ample cash, Tether aims at Amazon, Microsoft, and Google.
In June this year, Tether released a report stating that Tether's profit for the first half of 2024 was $5.2 billion, with total reserves of $118.5 billion. Ardoino took over as CEO last December after serving as CTO for six years. Under his leadership, Tether has made significant investments in energy development, Bitcoin mining, and communication technology to diversify its investments.
Ardoino stated that part of the funding is used to establish a buffer for USDT reserves, while the remainder is invested in the company's new venture capital department, Tether Evo. The company has already acquired a majority stake in the neurotechnology startup Blackrock Neurotech. 'The technology of brain-computer interfaces (BCI) will become very important in the future. It is also crucial to build brain and computer interfaces that respect personal privacy and ensure that data remains local and is not collected by a single company operating the platform,' Ardoino said in an interview.
Additionally, Ardoino also stated in interviews that AI is another important area for Tether's business expansion. Tether's venture capital evaluates hundreds of proposals each month, most of which come directly from startups, and has invested about $2 billion in the fields of AI and alternative financial infrastructure. For Tether, investing in AI not only means technological innovation but also ensuring that the company remains at the forefront of technology.