{"id":165124,"date":"2025-12-03T01:51:19","date_gmt":"2025-12-03T01:51:19","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/165124\/"},"modified":"2025-12-03T01:51:19","modified_gmt":"2025-12-03T01:51:19","slug":"largest-stablecoin-issuer-enters-ai-race","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/165124\/","title":{"rendered":"Largest stablecoin issuer enters AI race"},"content":{"rendered":"\n

Tether, the world\u2019s largest stablecoin issuer, has entered the large language model (LLM) arms race with the launch of QVAC Fabric LLM<\/a>.<\/p>\n

Announced on Dec. 2, the system allows full LLM execution, LoRA training and instruction-tuning directly on laptops, desktops, consumer GPUs, and even smartphones.<\/p>\n

Tether says it wants to decentralize access to AI development and remove the privacy trade-offs associated with cloud-based models.<\/p>\n

Related: Largest private gold holder shuts down Bitcoin mining operations<\/a><\/p>\n

High-performance LLM inference has traditionally required expensive servers or NVIDIA-grade infrastructure. QVAC Fabric LLM attempts to rewrite those assumptions.<\/p>\n

The company said the release eliminates vendor lock-in and allows organizations to build and deploy AI systems using hardware they already own. That includes support for GPUs from AMD, Intel, NVIDIA<\/a> and Apple Silicon, as well as mobile GPUs such as Qualcomm\u2019s Adreno and ARM Mali.<\/p>\n

A key breakthrough is the ability to fine-tune models directly on smartphone-class hardware. Tether said this unlocks \u201cpersonalized AI that can learn directly from users,\u201d preserving privacy and enabling offline operation in low-connectivity regions.<\/p>\n

QVAC Fabric LLM is available under the Apache 2.0 license, alongside multi-platform binaries and prebuilt adapters on Hugging Face.<\/p>\n

Tether said developers can get started with fine-tuning \u201cin only a few commands,\u201d making customization accessible to a far broader audience.<\/p>\n

The LLM launch comes as critics question the company’s financial health.<\/p>\n

Billionaire and BitMEX co-founder Arthur Hayes recently argued<\/a> that the USDT issuer is \u201cin the early innings of running a massive interest rate trade.”<\/p>\n

Hayes pointed to Tether\u2019s latest attestation, claiming its reserves now lean more heavily on Bitcoin<\/a> (BTC) and gold \u2014 assets he believes could face pressure if interest rates decline. He said a drawdown of about 30% in those holdings \u201cwould wipe out their equity,\u201d rendering USDT \u201ctheoretically insolvent.\u201d<\/p>\n

The critique comes days after S&P Global Ratings downgraded<\/a> Tether to \u201c5 (weak)\u201d on its five-point stablecoin risk scale on Nov. 26. The agency cited limited transparency and what it called rising exposure to higher-risk investments, including Bitcoin, gold, corporate debt, secured loans and other instruments that introduce credit, market, FX and interest-rate risks.<\/p>\n

Tether CEO Paolo Ardoino pushed back on both the downgrade and Hayes\u2019 remarks, publicly criticizing what he characterized as inaccurate assumptions about the company\u2019s reserves.<\/p>\n

Related: Exclusive: Tether CEO on stablecoin issuer’s ascent to record $13-billion profit<\/a><\/p>\n

This story was originally published by TheStreet<\/a> on Dec 2, 2025, where it first appeared in the Technology News<\/a> section. Add TheStreet as a Preferred Source by clicking here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Tether, the world\u2019s largest stablecoin issuer, has entered the large language model (LLM) arms race with the launch…\n","protected":false},"author":2,"featured_media":165125,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125,32248],"class_list":["post-165124","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-il","tag-israel","tag-technology","tag-tether"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/165124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=165124"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/165124\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/165125"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=165124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=165124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=165124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}