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Home - Stablecoins News - Tether CEO Promotes Localized AI Models To Improve Security

Stablecoins News

Tether CEO Promotes Localized AI Models To Improve Security

Mary
Last updated: October 14, 2025 8:33 am
Mary
Published: October 14, 2025
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Highlights
  • Tether CEO believes that localized AI models will offer improved security.
  • His advocacy for these models comes after a report exposing a security breach in OpenAI.
  • Tether is making great strides in the AI field, including creating an AI division.

The CEO of USDT stablecoin issuer Tether, Paolo Ardoino, has said that artificial intelligence (AI) models will guarantee improved privacy only if localized. 

In a post on X, Ardoino noted that locally executable AI models were the only guaranteed way of protecting user privacy.

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OpenAI seems to have been hacked a while ago. Scary.

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…

— Paolo Ardoino 🤖🍐 (@paoloardoino) July 6, 2024

Furthermore, such models were more resilient and independent and would better meet users’ needs. 

Tether CEO Advocates for Localized AI Models

He added that the best way to localize AI models was by finetuning large language models (LLMs) using data stored on smartphones and laptops.

Such data would guarantee that any improvements to the AI model are done locally on the device, improving the overall experience.

In the post, Ardoino hinted that he could already work on such a model, which will be a game-changer in the fast-growing artificial intelligence (AI) industry. 

Ardoino also believes that these models could address the vulnerabilities of the existing models, considering the recent hack on OpenAI, the creator of the ChatGPT chatbot. 

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A report by the New York Times revealed that a threat actor accessed the AI company’s internal messaging network and accessed information related to AI product designs.

However, the hackers did not access information on the AI developments happening at the company. 

OpenAI held a meeting in 2023 following the hack and informed employees and the company’s board of directors.

The company neither reported the hack to law enforcement nor did not make the news public, which has raised public criticism.

Ardoino believes a localized AI model could have prevented the breach, adding that the hacking incident was “scary.” 

Tether’s Advancement Into The AI Industry 

Just last month, the Tether CEO held an interview with Bloomberg, where he revealed investments in the AI industry. He noted that he had invested over $1 billion in AI, some of which were in companies like the Northern Data Group. 

While speaking to Bloomberg, Ardoino further noted that Tether could provide AI solutions to its invested companies. 

Tether also launched an AI division to create “open-source, multimodal AI models.” The company noted that these models will set a new standard across the AI industry to boost innovation and ensure people can access AI technology. 

The USDT stablecoin issuer plans to use the AI division to support strategic partnerships and bring AI technology into market-driven products. This unit also seeks to bring a new standard to the AI industry.

The company said,

Actively engaging with the broader ecosystem through community contributions, Tether data seeks to advance the field of open AI while showcasing its innovative projects.

Given Tether’s vast presence in the blockchain industry, the company is well-positioned to offer decentralized AI models that will solve the limitations of conventional AI models. 

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Mary BTCRebpublic
ByMary
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Muthoni Mary is an aspiring writer with a keen interest in the cryptocurrency and blockchain space. She combines her passion for finance and crypto with a talent for clear and engaging writing to curate informative articles.
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