Tether Plans Expansion into AI by Early 2025

Tether, the company behind the world’s largest stablecoin, USDT, is preparing to diversify its business by expanding into the artificial intelligence (AI) sector, with plans for an AI platform launch in the first quarter of 2025. This move marks a significant shift for the company, which has traditionally relied on USDT to generate revenue.

CEO Paolo Ardoino shared the announcement via X, revealing that Tether aims to broaden its focus beyond its US dollar-pegged stablecoin operations, extending its reach into emerging technologies such as AI, Bitcoin mining, and energy. This expansion signals Tether’s commitment to evolving and adapting in the rapidly changing digital asset landscape.

Tether’s push into AI follows its investment in Northern Data, a cloud computing and AI startup. Northern Data has been exploring the sale of its crypto mining operations in favor of concentrating on AI, aligning with Tether’s broader strategy. As part of this reorganization, Tether has also ventured into new sectors, including commodities trade financing and energy, indicating its intent to capitalize on emerging markets that intersect with blockchain and AI technologies.

Tether’s financial performance has been impressive in 2023, generating $5.2 billion in profits during the first half of the year. The company reported $4.5 billion in earnings for Q1 alone, reinforcing its dominant position in the stablecoin market. This strong financial performance provides Tether with the resources to pursue its diversification strategy and explore new revenue streams.

In addition to its focus on AI, Tether has also been strengthening its presence in Europe as part of its efforts to comply with the evolving regulatory environment for digital assets. Tether backed the launch of StabIR, a stablecoin designed to comply with the European Union’s MiCA (Markets in Crypto Assets) regulatory framework, positioning itself for expansion in the region following Coinbase’s delisting of non-compliant tokens.

Tether’s move into AI, alongside its record profits and increasing regulatory compliance efforts, underscores the company’s ambition to remain at the forefront of both the digital asset and technology sectors as it prepares for the next phase of growth.