Tether Launches Decentralized AI Platform Tether AI

Tether, the issuer of the widely used stablecoin USDT, has announced its foray into the artificial intelligence sector with the upcoming launch of Tether AI. This open-source AI platform is designed to operate on a decentralized, peer-to-peer network, marking a significant shift in the integration of cryptocurrency payments with advanced AI technologies. The platform will support direct payments in major cryptocurrencies, including USDT and Bitcoin, setting it apart from traditional centralized AI services.

Tether AI is described as a modular and composable AI runtime, capable of running on any hardware or device. Unlike conventional cloud-based AI services, Tether AI will not rely on centralized servers or require API keys. Instead, it will function on a distributed network, eliminating the risk of a single point of failure. This decentralized model aims to provide developers and users with greater autonomy, privacy, and security.

At the core of Tether AI is the concept of "Personal Infinite Intelligence," which suggests the development of individualized AI agents that can adapt to user needs and hardware constraints. This approach aligns with Tether's broader goal of offering AI tools that are both open and sovereign, powered by crypto infrastructure. The platform will support native crypto payments, with USDT and Bitcoin transactions processed directly on the peer-to-peer network. Tether's open-source wallet development kit (WDK), released in November 2024, will be integrated into the platform, allowing developers to build mobile, desktop, and web wallets for self-custodial asset management.

Tether emphasizes that users will retain full control over their funds, without the need for centralized intermediaries. This aligns with the company's mission to provide AI tools that are both open and sovereign. CEO Paolo Ardoino highlighted the current reliance of the AI industry on centralized APIs and cloud platforms, stating that Tether AI aims to change this by offering a fully open-source AI runtime that can operate anywhere without requiring centralized access.

Although Tether AI is not yet live, visiting the domain currently redirects users to Tether Data, suggesting potential integration with Tether's existing peer-to-peer technologies, such as Keet, a decentralized chat application, and Pear, a framework for building P2P apps. The platform was first introduced in December 2024, with a target launch by the end of Q1 2025. The latest updates indicate that development is progressing well, positioning Tether to enter the emerging space of decentralized AI with built-in crypto capabilities.

Ask Aime: What is the impact of Tether AI on decentralized financial systems?

Tether's open-source AI initiative is part of a broader pivot to artificial intelligence, announced as part of a corporate restructuring in April 2024. This restructuring created new business units focused on AI tools and peer-to-peer technology development, including Tether Data. CEO Paolo Ardoino has been steadily teasing the company's ambitions in AI, revealing in February that Tether's AI division was developing a suite of applications, including a translation tool, a voice assistant, and a Bitcoin wallet assistant, all powered by in-house models. Ardoino envisions AI becoming an integral part of the technological landscape, aligning with the futuristic vision of sci-fi legend Isaac Asimov.

The expansion into AI comes as Tether reported a $1 billion operating profit in Q1 2025, driven by strong returns on its U.S. Treasury holdings. With $149.3 billion in total assets and $5.6 billion in excess reserves, Tether continues to lead in the stablecoin space and is now poised to make significant strides in AI infrastructure. This move underscores Tether's commitment to innovation and its strategic positioning in the rapidly evolving fields of cryptocurrency and artificial intelligence.