Tether CEO Paolo Ardoino is eyeing significant investments in decentralized AI and brain-computer interfaces to challenge tech giants like Microsoft and Amazon.

Tether, the largest stablecoin issuer by market capitalization, aims to leverage its substantial profits for ventures in decentralized technologies and brain-computer interfaces. This move is seen as a strategic effort to compete with major tech companies.

In a recent interview, Tether CEO Paolo Ardoino discussed the company’s evolving strategy, which now includes a significant push into venture capital. Ardoino revealed that Tether’s profits, amounting to approximately $11.9 billion over the past two years due to rising interest rates, have paved the way for new investment opportunities.

“In the last 24 months, Tether has accrued around $11.9 billion profit. With this amount of money, we could have distributed it all to shareholders, to make everyone happy. Instead, part of it is being added to the reserve to further back the stablecoin, and the rest is basically being held in the investment arm.”

Ardoino emphasized that Tether’s venture capital efforts are guided by principles beyond traditional financial metrics and are driven by the ethos of decentralization and financial freedom that originally defined Bitcoin. He also suggested that decentralization could offer crucial independence in AI, which he described as “heavily politicized.”

“We are already seeing how AI is being heavily politicized. We believe that having a player independent of the classic actors — like Amazon, Microsoft, and Google — is going to be very, very important.”

Tether’s venture investments will not follow the traditional venture capital model of seeking high-risk, high-reward opportunities. Instead, the firm is focused on projects that align with its vision of interdependence. Ardoino highlighted that over 90% of Tether’s profits will be reinvested in ventures that resonate with these values, rather than being distributed as dividends.

In March, Tether announced a new AI division. This division focuses on developing open-source AI models and collaborating with other firms to integrate these models into products that could address real-world challenges. This initiative is part of a broader strategy that began in 2023 with Tether’s investment in Northern Data, a German company that has expanded from crypto mining to providing computational resources for AI-driven data analysis.

Addressing potential concerns about investment risks, Ardoino assured that Tether’s investment approach involves rigorous due diligence. He emphasized the firm’s commitment to not only invest but also actively support and, if needed, manage the companies it backs.

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