Northern Data Secures €575M Fund from Tether for AI and HPC Growth

Northern Data Secures €575M Fund from Tether for AI and HPC Growth 

Northern Data Group has secured €575 million in funding from the Tether Group to increase high-performance computing (HPC) capabilities and keep up with the growing demand for artificial intelligence (AI) solutions. The firm has disclosed that the funding will be utilized to enhance both its cloud services and hardware capabilities, as well as to concentrate on generative AI technologies.

Northern Data Group to Strengthen HPC Footprint with Tether's Funding 

Northern Data Group is set to receive €575 million in funding, which will fortify the company's plans to enhance its Artificial Intelligence (AI) and High-Performance Computing (HPC) development strategies. Previously recognized for their involvement in Bitcoin mining, the Frankfurt-based company has since become a dominant force in specialized HPC infrastructures. The funding from Tether Group will be directed towards the development of hardware, which is deemed for driving the next wave of generative AI innovations.

Tether's commitment to this investment reaffirms Northern Data's stronghold in the rapidly expanding HPC landscape, underscoring its intent to scale up generative AI cloud services. The growing fascination with generative AI has left data centers scrambling for space and grappling with rising infrastructure costs. Northern Data's focus on hardware improvements will help address the rising demand for computational power.

Northern Data has contemplated this tactical move because demand for computational power continues to soar. Tether’s funding of the HPC sector aligns with a broader strategy of supporting infrastructure integral to AI and blockchain technologies. Expressing the sentiment of strategic expansion, Tether’s CEO Paolo Ardoino said:

"Tether Group is proud to support Northern Data Group in its ability to provide customers access to flexible, energy-efficient high-performance computing infrastructure."

Northern Data's subsidiary, Taiga Cloud, is the driving force behind energy-efficient computing for businesses and research institutions, powered by NVIDIA technology. Tether has recently made an investment of USD 420 million in Nvidia's H100 GPUs, marking a significant foray into the AI hardware market. Both Northern Data and Tether are making strategic moves in the sector, aimed at consolidation.

Tether Acquires 20% Stake in the Northern Data Group 

Tether has recently acquired a 20 percent stake in the company, demonstrating its commitment to the future of Bitcoin mining. This development follows Tether's entrance into Bitcoin mining and its decision to add BTC to the company's balance sheet.

This collaboration between Northern Data and Tether has the potential to shape the future of AI, HPC, and the broader blockchain landscape.

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