Stablecoin giant Tether is expanding its presence in the “personalized AI” space, predicting that the technology is going to boom in the near future. On Wednesday, Tether’s investment arm announced a strategic investment in Eight Sleep, a sleep tech company headquartered in New York City. With Tether’s investment, Eight Sleep’s valuation has climbed to $1.5 billion.
Tether is looking to contribute in developing advanced AI-powered health technology. It will be giving Eight Sleep the access to its decentralized AI framework dubbed the QuantumVerse Automatic Computer (QVAC). This system is designed to process complex AI models on local hardware, eliminating the involvement of centralized cloud data centres.
“Together, the companies aim to deliver health intelligence that is adaptive, resilient, and secure by design, while preserving long-term flexibility as AI capabilities evolve,” the announcement by Tether said.
For Tether, this partnership will ensure that its QVAC system, launched in December 2025 is pushed into mainstream adoption. The system is being advertised as a network that unifies fragmented data from wearables and manual logs into one, encrypted offline environment.
Paolo Ardonio, the CEO of Tether, expressed a bullish sentiment towards this investment in Eight Sleep.
Eight Sleep was launched in 2014. It retails smart mattress accessories with sleep tracking functionalities and temperature adjustment settings.
Matteo Franceschetti, the Co-founder and CEO of Eight Sleep claimed that with Tether, he is aiming to create the world’s biggest health tech company.
“This partnership with Tether gives us the infrastructure to take that intelligence beyond the Pod, into every aspect of personal health. People should take notice,” Franceschetti.
The exact amount that Tether has invested in Eight Sleep remains undisclosed.
As reported by TechCrunch, however, Eight Sleep has raised $50 million in this funding round that was led by Tether. Last year, it had raised $100 million from investors like Valor Equity Partners, Founders Fund, and Y Combinator.