Rumble Just Bought 40,000 Nvidia GPUs--And Crypto Is Bankrolling the Whole Thing

This article first appeared on GuruFocus.

Rumble (NASDAQ:RUM) is making a bold play to supercharge its AI and cloud ambitions. The U.S. video-sharing and cloud-services platform said it would acquire Germany's Northern Data (NDTAF) in a deal worth up to $970 milliona move that could turn Rumble into a serious AI infrastructure player. Both companies count stablecoin giant Tether among their backers, adding a layer of financial muscle to the merger. Once completed, Rumble would gain access to Northern Data's powerful GPU arsenal, including more than 40,000 Nvidia chips, positioning it to compete more aggressively in AI-driven cloud computing. The transaction, expected to close in the second quarter of 2026, is designed to accelerate Rumble's global expansion strategy.

Warning! GuruFocus has detected 5 Warning Signs with RUM. Is RUM fairly valued? Test your thesis with our free DCF calculator.

Under the terms of the agreement, Northern Data shareholders will receive 2.0281 newly issued Rumble Class A shares for each Northern Data sharevaluing the company at about $767 million, or $11.95 per share, based on Rumble's recent closing price. They could also earn up to $200 million in cash if a separate sale of Northern Data's former Corpus Christi data center in Texas goes through. If all shares are tendered, Northern Data investors would hold roughly 30.4% of the combined company. Tether and affiliates of Northern Data's co-CEO Aroosh Thillainathan, which together control about 72% of the German firm, have already agreed to tender their shares.

As part of the deal, Rumble will assume a 610 million loan from Tether and repay half through newly issued Rumble shares priced at $7.88 apiece. The partnership deepens an already significant relationshipTether invested $775 million in Rumble earlier this year and is set to become a key customer of the combined entity. For Rumble, the acquisition could be more than just scaleit's a strategic leap into the AI era, giving the company the infrastructure to compete in one of tech's fastest-growing battlegrounds while aligning itself with a heavyweight backer that's betting big on digital infrastructure.

View comments