Canadian video hosting and cloud storage provider Rumble has signed a business combination agreement with German AI infrastructure company Northern Data.
According to a press release, the deal will enhance Rumble Cloud’s capabilities through a network of data centers with a planned capacity of 180 MW and approximately 22,400 Nvidia H100 and H200 GPUs.
The acquisition will be executed through a share exchange. Existing investors in Northern Data will receive about a 30% stake in the combined company. Based on Rumble’s stock price at the close of Friday’s session, the deal is valued at approximately $767 million.
The tech firm will also allocate $200 million for potential rewards to shareholders who accept the terms, contingent on certain performance metrics of Northern Data’s flagship data center in Corpus Christi, Texas.
Tether holds a stake in the German company. As part of a strategic partnership, the stablecoin issuer has also invested $775 million in Rumble.
The USDT issuer committed to purchasing AI computing services worth $150 million from the combined company over three years following the acquisition. Additionally, Tether provided Rumble with advertising commitments worth $200 million over the next two years.
“Northern Data. Tether. Rumble. This is how we build the AI ecosystem of the future from scratch,” stated Rumble CEO Chris Pavlovski.
On November 5, Northern Data announced the sale of its Bitcoin mining division, Peak Mining, to an undisclosed buyer. The upfront payment will be $50 million, with additional payments potentially reaching $150 million, based on the profit share of the Corpus Christi data center following the deal with Rumble. Of the 600 MW of available network capacity at the facility, 100 MW is used for cryptocurrency mining.
Back in October 2024, Northern Data announced its search for a buyer for Peak Mining to focus on AI services.