A quiet tremor has run through the digital landscape, signaling a significant shift in how we might build the future of artificial intelligence. Rumble, the video and cloud platform, has inked a deal to acquire Northern Data, a firm known for its AI and high-performance computing (HPC) infrastructure. This isn’t just another corporate handshake; it’s a move that ties deeply into the ambitions of Tether, the stablecoin giant, and aims to carve out a new path for AI development.
- Rumble is acquiring Northern Data, a company specializing in AI and high-performance computing, with significant backing from Tether. This strategic move aims to establish a new AI ecosystem independent of major tech players.
- The acquisition involves a complex exchange of shares and potential cash, with Northern Data shareholders potentially holding a substantial stake in the combined entity. Tether is also providing financial support through a shareholder loan conversion and refinancing.
- Tether’s involvement extends to becoming an anchor customer for GPU services and a significant advertising partner, aiming to build its AI models on decentralized infrastructure and promote its payment ecosystem.
Think of it like this: a video platform, a computing powerhouse, and a major crypto player are all joining forces. The goal, it seems, is to create a robust ecosystem for AI, one that stands apart from the usual big tech players. It’s a bold statement, especially when you consider the sheer scale of the assets involved.
The agreement, announced recently, sees Rumble making a public exchange offer for Northern Data’s shares. Each Northern Data share can be tendered for 2.0281 newly issued Rumble Class A shares. This is a slight adjustment from the 2.319 shares initially proposed back in August, when the deal was first floated as a potential $1.17 billion acquisition. Things change, don’t they? The market always has its say.
Based on Rumble’s stock price of $5.89 at Friday’s close, the current valuation sits around $767 million. There’s also a potential cash component of up to $200 million. This cash depends on Northern Data successfully selling its Corpus Christi HPC site. If that goes through, the total value could reach $967 million. It’s a complex dance of shares and potential cash, a familiar tune in big mergers.
Northern Data recently sold its bitcoin mining arm, Peak Mining, for up to $200 million. This move certainly cleared the decks, allowing the company to focus squarely on AI and HPC. For Rumble, this acquisition means a substantial expansion of its cloud and AI capabilities, bringing in one of Europe’s largest GPU estates. We are talking about serious computing power here.
The deal is expected to wrap up in the first or second quarter of 2026, assuming all regulatory hurdles are cleared. Once complete, Northern Data’s shares will delist. Northern Data shareholders, if they all tender their shares, would hold about 30.4% of Rumble on a pro forma basis. It’s a significant stake, giving them a strong voice in the combined entity.
A crucial piece of this puzzle is the commitment from shareholders representing about 72% of Northern Data’s equity. This group includes Tether and individuals connected to Northern Data CEO Aroosh Thillainathan. Their commitment to sell on the same terms as the public offer anchors the deal, providing a solid foundation for the merger to proceed. It shows a unified vision, which is always a good sign.
Rumble will also take on Northern Data’s roughly €610 million (about $705 million) shareholder loan from Tether. Half of this balance will convert into Rumble shares, priced at $7.88 per share. The remaining half will be refinanced through a new secured loan from Tether. It’s a clever way to manage debt while deepening the ties between the companies.
What does Rumble gain physically? Around 22,400 Nvidia units, a mix of H100 and H200 models. These are the workhorses of modern AI. Rumble also gets a network of owned and co-located data center sites, including Northern Data’s 180MW-capacity Maysville, Georgia development. That’s a lot of power and processing capability, ready to be put to work.
Tether’s AI Play and “Freedom-First” Vision
Chris Pavlovski, Rumble Chairman and CEO, put it plainly. “Northern Data. Tether. Rumble. This is how we build the AI ecosystem for the future, from the ground up,” he said. He champions a “Freedom-First” approach to tech, contrasting it with what he calls “Big Tech.” It’s about empowering people, not controlling them, built on principles like free speech, privacy, and independence. A lofty goal, certainly, but one that resonates with many in the crypto space.
Tether, already a significant investor in Rumble with a $775 million strategic investment made in February, is doubling down. The stablecoin issuer has agreed to become an anchor customer for the merged entity. This means Tether will commit to purchasing up to $150 million of GPU services over two years after the deal closes. This commitment is a big deal.
Why is it a big deal? It positions Tether to build its AI models on infrastructure outside the usual hyperscale cloud providers. This arrangement, Rumble suggests, will allow Tether to pursue long-term AI development, insulated from censorship or platform restrictions. It’s a direct challenge to the centralized nature of much of today’s AI development, a move many will watch closely.
But Tether’s involvement doesn’t stop there. The company also entered into a separate $100 million advertising agreement with Rumble. This commitment spans $50 million per year over 2026 and 2027. The goal is clear: drive adoption of Rumble Wallet and expand creator monetization on the platform. It also supports new advertising formats linked to Rumble’s payments ecosystem. It’s a multi-pronged strategy, linking infrastructure, finance, and user growth.
Rumble’s Financials and the Road Ahead
Amidst all this merger talk, Rumble also reported its third-quarter 2025 financials. The company posted revenue of $24.8 million and an average revenue per user of $0.45. Importantly, it reduced its net loss to $16.3 million. These numbers offer a snapshot of Rumble’s current operational health as it prepares for this major expansion.
The company ended the quarter with a solid $293.8 million in liquidity. This included $269.8 million in cash and 210.82 BTC, which was valued at $24 million at the time. Having a healthy treasury is always a good thing, especially when embarking on such an ambitious acquisition. It provides a cushion for the integration process and future growth initiatives.
This whole scenario paints a picture of a deliberate effort to build an alternative infrastructure, not just for video, but for the very fabric of future AI. It’s a vision that aligns with the decentralized ethos often found in crypto, yet it plays out on a very traditional corporate stage. Will this “Freedom-First” AI ecosystem truly offer a different path, or will it simply become another large player in a crowded field? Only time, and the relentless march of technological progress, will tell.
