Paolo Ardoino, the CEO of leading stablecoin issuer Tether, made a significant announcement on May 5, stating that the company is preparing to enter the $25 billion artificial intelligence sector.
Tether Announces Tether AI, the Company’s Modular and Open-Source AI Agent Framework
In an X post, Ardoino introduced Tether AI, which he called a “fully open-source” AI runtime that is capable of adapting and evolving on hardware and devices. He noted that it does not require any API keys, has no central point of failure, is fully modular and composable, and is infused with the company’s Wallet Development Kit (WDK) to enable payments in Tether USD (USDT) and Bitcoin (BTC).
WDK is Tether’s modular software development kit (SDK) that enables businesses and developers to integrate non-custodial wallets and user experiences for BTC and USDT across any app, website, or device.
Tether AI has launched its official website, called Tether.ai, where it is stated that the company’s products will potentially integrate its peer-to-peer communication app, Keet, as well as other data tools.
The crypto firm has been working for years on expanding its reach in the AI space. In September 2023, Tether invested an undisclosed amount in Northern Data, a German data center operator. Two months later, the company increased Northern Data’s debt financing to $610 million.
In April 2024, a $200 million investment was made into brain-to-computer interface company Blackrock Neurotech, which develops technologies aimed at aiding the lives of people diagnosed with neurological illnesses, paralysis, and other mobility, sensory, and communicative impairements.
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Tether AI Aims to Democratize AI Development With an Emphasis on User Data Privacy
Tether’s goal is to democratize AI development by enabling seamless functioning of AI agents on all kinds of devices, from cell phones to flagship smartphones, laptops, and robust mainframes. The company claims that Tether AI’s modular design makes it versatile enough to accommodate diverse machine learning algorithms, such as Marian and Llama.
The Personal Infinite Intelligence AI runtime environment does not require access to centralized APIs or cloud servers, thereby empowering individuals and developers to own and control their AI agents. Tether’s initiative departs sharply from the AI sector’s overreliance on powerful centralized infrastructures. Ardoino said that having “no gatekeepers” is a founding principle of its AI project.
Tether aims to address growing concerns about data privacy and ethical use of AI by focusing on developing models that are local and run directly on the users’ personal devices. This approach would allow users to use the agents without constantly having to share their data with large corporations and risk exposing themselves to bad actors.
Ardoino has not shared the full details about Tether’s AI endeavor, but if his posts have proved anything, it is that the project will be drastically different from mainstream AI models, with an emphasis on privacy and consumer protection.
While stablecoins remain its flagship product, Tether has expressed its interest in other areas such as Bitcoin mining and AI. In 2023, the company invested in Bitcoin mining operations in Latin America that utilize renewable energy for their operations. It also developed an encrypted messaging app and other privacy-focused technologies to support secure communication in the digital space.
Although Tether’s AI project is still in its early stage, the initiative signals a strong commitment from the company towards building AI frameworks that are anchored in the principles of freedom, accessibility, and crypto-native use case.