Northern Data Group has confirmed a €575 million ($610M) debt financing from Tether Group, a signal of heightened activity in the high-performance computing sector responding to the artificial intelligence (AI) demand surge. The firm detailed that the funding is poised to advance Northern Data’s cloud services and hardware capabilities, focusing on generative AI technologies.
Northern Data Group Nets €575M From Tether to Supercharge AI and HPC Expansion
The Frankfurt-based Northern Data Group, a bitcoin (BTC) mining company expanding into specialized high-performance computing (HPC) infrastructure, has secured a financing deal with Tether Group. The €575 million in funds are intended to boost Northern Data’s investment in cutting-edge hardware, which is vital for advancing the next generation of generative AI.
The firm noted that the investment by Tether, the largest stablecoin issuer in the crypto space, reinforces Northern Data’s position in the expanding HPC landscape. It will enable Northern Data to scale its generative AI cloud service provider offerings. The surging interest in generative AI has exerted pressure on data centers, precipitating a scarcity of space and driving up infrastructure expenses.
Northern Data believes this is a critical move as demand for computational power continues to climb. Tether’s foray into the HPC arena through this financing aligns with a broader strategy of supporting infrastructure critical to AI and blockchain technologies. Echoing the sentiment of strategic expansion, Tether’s CEO Paolo Ardoino stated:
Tether Group is proud to support Northern Data Group in its ability to provide customers access to flexible, energy-efficient high-performance computing infrastructure.
Through its subsidiary, Taiga Cloud, a generative AI cloud service provider, Northern Data Group supplies energy-efficient computing power to businesses and research institutions, powered by the latest NVIDIA technology. The news comes after Tether’s significant investment of $420 million in Nvidia’s H100 GPUs, signaling a major move into the AI hardware market.
This development is in line with Tether’s recent acquisition of a 20 percent stake in Northern Data, an investment that followed its venture into bitcoin mining and adding BTC to the company’s balance sheet, among others. The company released its assurance opinion report, examined by BDO, earlier this week.
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