Written by: Chloe, PANews

Tether CEO Paolo Ardoino revealed Tether's latest local artificial intelligence Local AI development kit on October 26 at the Lugano Plan ₿ event. This new type of AI development kit focuses on user privacy, supported by peer-to-peer technology.

The standout feature of Local AI is its versatility, allowing developers to run their written code on a variety of devices, from low-cost mobile phones to high-end smartphones, laptops, or large systems equipped with H100 processors. Moreover, this technology can be applied to multiple devices, including smart refrigerators and automotive entertainment systems.

In March of this year, Tether announced the establishment of a new artificial intelligence department called 'Tether data,' dedicated to accelerating its entry into the AI field, aiming to build the next generation of open AI models. Under the leadership of Paolo Ardoino, the newly established AI department Tether data focuses on developing 'open-source, multimodal AI models.' This significant initiative aims to increase the accessibility and efficiency of AI and demonstrates Tether's commitment to advancing AI and peer-to-peer technology.

The launch of Local AI aims to break through the application scope of traditional computing devices.

During the recent Lugano Plan ₿ event in Switzerland, Ardoino demonstrated how Local AI transcends the application range of traditional computing devices. The software development kit (SDK) can eventually be implemented in smart appliances, including refrigerators and automotive entertainment systems, highlighting its broad potential applications.

Local AI particularly emphasizes 'Local' computing, meaning that AI computations are completed on the user's own device, utilizing P2P (peer-to-peer) technology to allow data to be exchanged directly between devices.

Traditional network architecture means that every image, website, or application has a dedicated server that stores it, each server has its own IP address, and when we browse the web, we request permission from the server via its IP address. It can be said that the server controls all user ownership.

In a P2P setup, 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, essentially acting as their own server, which is also the goal of Tether to promote AI and peer-to-peer technology.

A key feature of Local AI is its ability to load and store model weights and fine-tune 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 showcased a fully local and privacy-focused translation application that can run on any device, avoiding personal data sharing with third parties and compatible with various models (e.g., Marian and Llama). Additionally, Local AI is based on the open-source project 'holepunchto/bare,' which plays a crucial role in its architecture.

Suppose a user is using a translation application developed based on the Local AI SDK, which can directly obtain updated language models from other users. The user's personal device can share optimized translation results directly with other devices, and all this information exchange is encrypted, requiring no 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-focused technologies and also marks Tether's continued expansion of its AI technology products beyond just stablecoin services.

Last year, the accumulation of computing power capital from chip purchases led to the establishment of a department to expand AI business this year.

In 2023, Tether's annual net profit reached $6.2 billion. In September of last year, 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 shipment of 550,000 H100 GPU chips for the year.

At the time, this transaction was part of Tether's collaboration with Bitcoin miner Northern Data Group, where Northern Data could access a large number of H100 units, and Tether would obtain a 20% stake in Northern Data. Forbes also mentioned that Northern plans to lease these graphics cards to AI startups in urgent need of significant computing power, potentially making Northern Data the largest GPU operator in Europe outside of Amazon, Microsoft Azure, and Oracle.

In March of this year, Tether announced the establishment of the Tether data department, focusing its AI business expansion on several key areas. The first is the development of open-source multimodal AI models to establish new industry standards and promote innovation and accessibility in AI technology. In an interview with WIRED, Ardoino mentioned, 'The concept of decentralization can be applied to different fields, such as AI. We have seen AI become severely politicized. I also believe it is important to have a role independent of traditional tech companies like Amazon, Microsoft, and Google.'

Secondly, Tether data seamlessly integrates AI solutions into products on the market, using technology to solve real-world challenges. Finally, through community contributions, Tether data actively participates in a broader ecosystem, committed to advancing the open AI field while showcasing its innovative projects.

With ample cash, Tether is targeting Amazon, Microsoft, and Google.

In June this year, Tether released a report stating that Tether's profit for the first half of 2024 would be $5.2 billion, with total reserves of $118.5 billion. Ardoino took over as CEO last December after serving as CTO for six years, and under his leadership, Tether has made significant investments in energy development, Bitcoin mining, and communication technologies to diversify its investments.

Ardoino stated that part of the funds would be used to establish a buffer for USDT reserves, while the remaining funds would be invested in the company's new venture capital department, Tether Evo. The company has already acquired a majority stake in the neuro-implant technology startup Blackrock Neurotech. 'The technology of brain-computer interfaces (BCI) will become very important in the future, and it is crucial to build brain and computer interfaces that respect personal privacy, ensuring that data remains local and is not collected by a single company operating the platform,' Ardoino stated in an interview.

Additionally, Ardoino stated in an interview that AI is another important area for Tether's business expansion. Tether's VC evaluates up to hundreds of proposals each month, most of which come directly from startups, and has invested approximately $2 billion in the fields of AI and alternative financial infrastructure. For Tether, investing in AI not only means technological innovation but also ensuring the company remains at the forefront of technology.