In a strategic maneuver set to reshape the landscape of artificial intelligence and cloud services, video-sharing and cloud platform Rumble is poised to acquire Northern Data, a significant player in AI and high-performance computing infrastructure. This ambitious expansion, designed to aggressively grow Rumble's footprint, is notably underpinned by the stablecoin issuer Tether, which is set to become Rumble's largest Class A shareholder.
Rumble's Strategic AI Expansion
Rumble's planned acquisition of Northern Data is a bold move to solidify its position as a global leader in AI cloud services. The proposed stock exchange deal involves Rumble issuing new Class A shares in exchange for Northern Data's stock, which could grant Northern Data shareholders approximately 33.3% ownership in the combined entity. This acquisition is driven by Rumble's ambition to integrate Northern Data's core operations, including its Ardent data center business and Taiga, a GPU-as-a-service provider boasting a substantial fleet of over 20,000 Nvidia H100 and H200 GPUs, alongside five data centers with nearly 850 MW of combined capacity. This integration aims to significantly bolster Rumble's infrastructure and accelerate its "new phase of aggressive growth" in competing with major tech peers.
Tether's Pivotal Role
A crucial element of this transaction is the pivotal involvement of Tether. Already holding a 54% stake in Northern Data, Tether intends to convert its entire ownership into newly issued Rumble Class A shares following the same exchange ratio offered to other Northern Data shareholders. This strategic conversion will position Tether as the largest Class A shareholder of Rumble post-acquisition, aligning with its ongoing diversification strategy into AI and cloud services. Beyond the equity stake, Tether also plans to enter a multi-year GPU purchase agreement with Rumble and adjust its existing loan to Northern Data, providing the combined business with enhanced financial flexibility. Despite Tether's significant shareholding, Rumble CEO Chris Pavlovski will maintain majority voting power, ensuring the company's strategic vision remains intact.
