Paolo Ardoino, the CEO of stablecoin issuing company Tether, expressed alarm over OpenAI's security breach, claiming that decentralized artificial intelligence models are the strongest defense against such attacks.

What Happened: The man at the helm of affairs of a company behind the world's most traded cryptocurrency, Tether (CRYPTO: USDT), described the hack, the details of which were unearthed last week, as "scary."

Ardoino lent his support to what he described as locally executable AI models, arguing that these are the "only way" to protect people's privacy and ensure resilience.

"New generation smartphones and laptops are more than powerful enough to fine-tune general large language models (LLMs) with user's own data, preserving enhancements locally to the device," the CEO emphasized.

See Also: Crypto Billionaire Justin Sun Offers To Buy Bitcoin Off-Market From German Government To Minimize Price Impact, Lawmaker Slams Authorities For Selling

Ardoino stated that the company was working toward creating decentralized, localized AI models. Note that Tether has already made its plans clear to invest heavily in AI technologies.

Why It Matters: Ardoino's views came following the sensational disclosure of a security breach at the Sam Altman-founded firm last year. The executives withheld the news from going public because no customer or partner information had been compromised.

Tether CEO was another influential voice from the cryptocurrency industry to question the concentration of power in the AI industry.

In May, Ethereum (CRYPTO: ETH) co-founder Vitalik Buterin also pushed for an ecosystem of open models running on consumer hardware rather than a few central servers controlled by a small cohort of conglomerates.

Image via Shutterstock

• Spot Ethereum ETFs Could Launch In A Week Or Two, Says ETF Analyst Nate Geraci: 'How Quickly Will SEC Turn These Around?'