Tether CEO: New AI Could Have Prevented OpenAI Hack
Tether CEO Paolo Ardoino asserts that decentralized AI models could have prevented the OpenAI hack, promising enhanced privacy and security for users.
Tether is developing decentralized AI models to enhance security and privacy, according to CEO Paolo Ardoino. These models will allow AI to run locally on devices, preserving user data and ensuring system independence. This initiative is part of Tether's new AI division, aiming to set standards for open-source AI. Tether, the issuer of the USDT stablecoin, is moving into the AI sector with these efforts.
Ardoino revealed on X that these models could have stopped last year’s OpenAI hack. Reports show that a hacker accessed OpenAI’s internal messaging to steal AI product designs. However, the hacker couldn't reach the core AI development system.
The incident was shared with employees and directors in April 2023 but wasn’t made public or reported to law enforcement, causing severe criticism. Ardoino believes using locally executable AI models could have prevented this. He explained that these models protect privacy and ensure system resilience. Modern smartphones and laptops are powerful enough to fine-tune general large language models (LLMs) with user data, keeping improvements on the device.
“Locally executable AI models are the only way to protect privacy and ensure resilience and independence,” Ardoino stated. He added that new smartphones and laptops can fine-tune general LLMs with user data, preserving improvements locally.
Ardoino hinted that Tether is working on these solutions, ending his comment with “WIP [Work in progress].” This aligns with Tether’s new AI division, which aims to lead in developing open-source, multimodal AI models. The company has already invested significantly in AI firms like the Northern Data Group.
“Tether plans to pioneer open-source, multimodal AI models to set new industry standards,” Tether stated. The company’s AI unit will build models and collaborate to integrate AI into market-driven products, advancing open AI.
By developing decentralized AI, Tether aims to enhance security and set industry standards, preventing future incidents like the OpenAI hack.
