Rumble, a popular live streaming platform and Bitcoin-hodler, is making big moves in the world of artificial intelligence and high-performance computing. The company recently announced its plans to acquire Northern Data, a leading provider of AI and HPC infrastructure.
The acquisition will involve a stock exchange offer, with Rumble issuing newly issued Class A shares in exchange for Northern Data’s stock. Each Northern Data shareholder will receive 2.319 Rumble shares for every share they hold, giving them an approximate 33.3% ownership stake in Rumble.
Rumble’s decision to acquire Northern Data is driven by its desire to strengthen its position as a global leader in AI cloud services. By integrating Northern Data’s core operations, including its data center business Ardent and GPU-as-a-service offering Taiga, Rumble aims to enhance its capabilities in delivering cutting-edge AI solutions.
Northern Data boasts an impressive infrastructure, with five data centers and over 20,000 Nvidia GPUs. The company’s data centers have a combined energized capacity of nearly 850 MW, positioning them as a key player in the HPC space.
In a statement regarding the acquisition, Rumble CEO Chris Pavlovski highlighted the company’s commitment to expanding its cloud and AI initiatives to support the growth of a free and open internet. He expressed Rumble’s ambition to compete with and surpass big tech peers in the industry.
Tether, the issuer of the USDT stablecoin, has played a significant role in facilitating the acquisition. With a 54% stake in Northern Data, Tether plans to sell its shares to Rumble in exchange for Class A shares. This move will make Tether the largest shareholder of Rumble’s Class A common stock, with Pavlovski retaining majority voting power.
Additionally, Tether will enter into a multi-year GPU purchase agreement with Rumble and adjust its existing loan to Northern Data, providing the combined business with enhanced financial flexibility.
Overall, Rumble’s acquisition of Northern Data marks a significant step towards solidifying its position in the AI and HPC space. With Tether’s support and a strong focus on innovation, Rumble is poised for continued success in the evolving tech landscape.