Tether has announced the launch of Tether.AI, a new artificial intelligence project focused on privacy and local operations. Paolo Ardoino, the CEO of Tether, introduced this development with the words “Tether.AI loading… Local, personal, private.” His statement highlights the company’s commitment to building AI technology that prioritizes user control and security.
This new initiative arises amid growing concerns about data privacy and its ethical use. In late February 2024, over 300 experts in artificial intelligence, digital ethics, and child safety convened to issue a letter urging governments worldwide to take immediate action to curb deepfakes and ensure the responsible use of AI.
Tether.AI aims to address such concerns by focusing on local AI models that run directly on personal devices. This approach would allow users to use AI without constantly sharing their data with large corporations or exposing themselves to security risks.
Tether is a financial technology company best known for creating USDT, the world’s largest and most widely used stablecoin. Founded in 2014, Tether operates at the intersection of cryptocurrency and traditional finance, providing digital tokens that are pegged to real-world assets like the US dollar, the euro, and gold.
Over the years, Tether has expanded beyond its original vision. It has launched multiple versions of its stablecoin on different blockchain networks, including Ethereum, Tron, Solana, Avalanche, and others. This broad adoption has made USDT the most traded cryptocurrency in the world, with daily trading volumes often surpassing those of Bitcoin.
While stablecoins remain its core product, Tether has expanded into other sectors. In 2023, Tether invested in renewable energy projects and Bitcoin mining operations in Latin America. Tether has also developed encrypted messaging applications and other privacy-focused technologies to support secure communication in the digital space.
In March 2024, Tether announced its plan to expand and enter the artificial intelligence (AI) market. The firm planned to use its knowledge and assets to explore opportunities in the AI sector.
A month later, Tether invested $200 million into a brain-computer interface company, Blackrock Neurotech. Neurotech is developing technologies that can aid the lives of people with neurological illnesses, paralysis, and other mobility, sensory, and communication impairments.
By the end of October 2024, the CEO of Tether unveiled an innovative AI development kit focused on privacy. Dubbed the Tether Local AI Kit, this cutting-edge toolkit leverages peer-to-peer technology to maximize adaptability and secure usage across different devices.
Its goal is to democratize AI development, seamlessly running on everything from an affordable $40 cell phone to top-tier gadgets like flagship smartphones, laptops, and robust mainframes.
With a modular design, Tether’s AI Kit is versatile enough to accommodate diverse machine learning models, such as Marian and Llama.
In early February 2025, Paolo Ardoino announced that Tether was developing AI-powered applications on Tether Data. These new apps would feature AI translators, a voice assistant, and an AI Bitcoin wallet assistant.
Paolo Ardoino has not yet shared full details on how Tether.AI will work, but his emphasis on privacy suggests that the project will be different from mainstream AI models that rely heavily on internet connectivity.
