German data firm Northern Data has acquired a majority stake in Damoon Designated Activity, allowing the company to purchase €400 million ($427 million) worth of Nvidia graphic processing units (GPUs). The chips will be used in Northern Data’s cloud service, Taiga Cloud, with plans to offer access to customers in the fourth quarter of this year.
This move by Northern Data reflects a growing trend of companies venturing into new domains. Tether, the largest stablecoin company with its $83 billion USDT, has recently made investments in bitcoin mining operations in South America and a payment processor in Georgia.
Northern Data, which is publicly listed, has shifted its focus from crypto mining to providing computing power for AI-related data processing. As a result of this acquisition, the company’s shares rose by 2.7% on Thursday.
Paolo Ardoino, Tether’s chief technology officer, expressed excitement about the investment, stating that it represents a venture into new technological frontiers. Tether also clarified that this investment does not impact the backing reserves of its stablecoins.
The acquisition of Damoon Designated Activity and the subsequent purchase of Nvidia GPUs by Northern Data demonstrates the company’s commitment to expanding its cloud solutions business. By diversifying its offerings and staying at the forefront of technological advancements, Northern Data aims to solidify its position in the data industry and cater to the growing demand for AI-related computing power.