Tether Is Developing Decentralized AI Models to Protect User Privacy and Ensure System Resilience

CEO Paolo Ardoino revealed this on Twitter, stating that these models could have prevented last year's hack of OpenAI.

Stablecoin issuer Tether is reportedly venturing into decentralized artificial intelligence (AI) models.

In an Xもしろ発言, CEO Paolo Ardoino mentioned that these models could have prevented last year's OpenAI hack.

Tether's Decentralized AI EndeavorsAccording to reports, a hacker breached OpenAI's internal messaging platforms to pilfer details on the company's AI product designs. However, the attackers were unable to access the system housing the AI development.

While this incident was disclosed to employees and the board of directors in an April 2023 meeting, the company did not publicize the news or report the hack to law enforcement. This silence drew heavy scrutiny, with some criticizing the company's handling of the situation. But Ardoino suggests that decentralized AI models could have prevented this.

Ardoino stated that these models prioritize user privacy and bolster system resilience and independence. He highlighted that new-generation smartphones and laptops boast the capability to fine-tune general large language models (LLMs) with users' own data. This allows for enhancements to be preserved locally on the device itself.

“Locally executable AI models are the only way to protect people privacy and ensure resilience / independence. New generation smartphones and laptops are more than powerful enough to fine tune general LLMs with user’s own data, preserving enhancements locally to the device,” added Ardoeno.

Ardoino's statement concludes with a "WIP [Work in progress]" note, hinting at the company's involvement in these solutions.

This revelation aligns with Tether's recent announcement of a new AI division to capitalize on the booming AI trend. The firm aims to pioneer the creation of open-source, multimodal AI models that will define new industry standards. Notably, the company has already made significant investments in AI companies, such as the Northern Data Group.

“Tether data plans to pioneer the development of open-source, multimodal AI models to set new industry standards, driving innovation and accessibility within AI technology,” stated Tether.

Tether's AI unit will be responsible for building AI models and leading collaborations to integrate AI solutions into market-driven products. The unit also aims to advance the field of open AI.

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