# Tether Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Tether", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

AI Industry Welcomes a Cash-Rich Tether

Tether, the company behind the stablecoin USDT, reported a staggering $13 billion profit in 2024, significantly outperforming major AI companies like OpenAI and Anthropic, both of which incurred substantial losses. With only 150 employees, Tether achieved a per capita output 60 times greater than OpenAI’s. Its business model is simple: for every USDT issued, Tether holds one US dollar, primarily investing these reserves in U.S. Treasury bonds. It earns the interest income without paying any to USDT holders. In 2024, interest alone contributed $7 billion to its profits. Now, Tether is aggressively investing in AI. It loaned over $600 million to Northern Data, Europe’s largest GPU cloud provider, acquiring what is effectively an AI training base. It also released QVAC Genesis, a massive open-source AI training dataset. Furthermore, Tether invested $200 million in Blackrock Neurotech, a pioneering brain-computer interface company. Additional investments in robotics could bring its total AI-related spending to nearly $2 billion. Tether’s move into AI may be driven by both anxiety over declining Treasury yields and ambition to establish itself as a tech leader. Ironically, it promotes "decentralized AI" despite being a highly centralized company itself. While OpenAI and Anthropic struggle with profitability and continuous fundraising, Tether leverages its highly profitable stablecoin business to fund its AI ambitions risk-free, making a paradoxical case that the best business model in AI might be not to do AI at all.

marsbit01/05 09:12

AI Industry Welcomes a Cash-Rich Tether

marsbit01/05 09:12

From Left-Hand to Right-Hand Related-Party Transactions to Infiltrating Wall Street and the White House: What Power Game Is Tether Playing?

Recent reports reveal Tether's complex internal transactions and growing political ties, raising questions about its corporate governance and influence. Tether’s subsidiary Northern Data sold its bitcoin mining unit, Peak Mining, for $200 million to entities controlled by Tether’s own executives—co-founder Giancarlo Devasini and CEO Paolo Ardoino. This “left-hand-to-right-hand” deal, structured through loosely regulated markets, avoided disclosure as a related-party transaction. The timing coincided with Rumble’s $760 million acquisition plan for Northern Data. Tether, which holds 48% of Rumble, appears to have stripped high-volatility mining assets to present Northern Data as a pure AI cloud provider, likely boosting its valuation. A €610 million loan from Tether to Northern Data was reconfigured in the deal—partly converted into Rumble shares and partly into a new loan backed by Northern Data’s assets. Tether also has deep ties with Wall Street and U.S. politics. Cantor Fitzgerald’s CEO Howard Lutnick, now U.S. Secretary of Commerce, previously backed Tether’s reserves and negotiated a $600 million convertible note deal—a move criticized as a conflict of interest. Despite Lutnick’s assurances of stricter oversight, concerns remain about Tether’s influence. With an estimated $15 billion profit at a 99% margin this year, Tether is expanding into AI, media, and even sports. Critics question whether its profits serve the crypto ecosystem or a closed wealth cycle for its executives. Through strategic deals and political connections, Tether is building an empire that merges financial power with regulatory influence.

marsbit12/24 12:46

From Left-Hand to Right-Hand Related-Party Transactions to Infiltrating Wall Street and the White House: What Power Game Is Tether Playing?

marsbit12/24 12:46

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