European Prosecutors Probe Northern Data’s €500 Million GPU Buy
(Bloomberg)-A criminal investigation leading to raids on the Northern Data AG offices for the week, according to people who know the issue, focuses on whether the company demands an illegal € 500 million ($ 586 million) on high-performance information chips.
People who want to not be defined because information is special, European prosecutors are looking at North Data’s purchase of graphic processing units for a site in Northern Sweden. According to people, they investigate whether the northern data supported by Stablecoin Exporter Tether Holdings SA, claiming that chips are for artificial intelligence when used for crypto currency mining.
Sweden initially adopted crypto currency mining, but in 2023, he made a U -turn, scrapped tax incentives for companies, and set up mining operations and left it in place for data centers. Since then, Swedish tax officials have been investigating several crypto miners because it is claimed to provide misleading information to benefit from tax incentives, according to last year’s statement.
“Northern Data believes that the tax treatment of the GPU proposal is the misunderstanding of the tax treatment of the GPU proposal, which is only dedicated to cloud computing and the economic and legal structure of the company’s old crypto mining operations,” he said.
The European Public Prosecutor’s Office, Frankfurt and Boden raided raids in Sweden and arrested four people in connection with more than € 100 million in connection with an investigation of more than € 100 million in connection with a large -scale investigation of VAT fraud ”. One of the people familiar with the issue said that a senior northern data worker in Sweden was questioned.
In his statement to Bloomberg, the case focuses on the activities of Northern Data in Sweden between 2021 and 2024. Authorized, inspectors, tax crimes and money laundering of the subsidiaries to investigate the tax crimes, he added.
A northern data spokesman refused to comment on the direction of money laundering of the investigation.
In crypto mining, the roots of northern data market itself as a greener alternative for the energy intensive information processing process required to mint crypto currencies such as Bitcoin. However, the productive AI explosion sent a request for information for the rise of this technology, and the company started to provide resources to artificial intelligence systems, training and business as well as most of its peers.
Northern data previously NVIDIA CORP. The GPUs used mining on the crypto currency ether until the coin had a large software update that made a large software update in 2022 for this purpose in 2022. In 2023, he spent about € 400 million on the H100 GPU of 10,000 NVIDIA to expand the European AI offer.
Northern data belongs to the majority of Tether, who invested in the conservative YouTube alternative Rumble Inc. last month. Tether is currently discussing with investors for an increase of 20 billion dollars in an agreement that can push the crypto company to the highest ranks of the world’s most valuable private companies.
“Tether was not involved in the daily management of this company and was not aware of such investigations before these reports, T said Tether spokesman. “This company is a small part of our general investment portfolio and Tether has no effect or effect on business or operations.”
-Help from Anton Wilen.
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