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Rumble Eyes Global AI Expansion with .17 Billion Northern Data Deal
artificial-intelligence

Rumble Eyes Global AI Expansion with .17 Billion Northern Data Deal

Rumble plans a .17 billion all-stock deal to acquire Northern Data’s AI cloud and data center units, boosting GPU capacity and global reach.

August 12, 2025
5 min read
Ifeoluwa Olalere

Rumble Eyes Global AI Expansion with $1.17 Billion Northern Data Deal

Rumble is preparing to take a significant step beyond its video streaming roots by moving into the global artificial intelligence infrastructure market. The Canadian-based platform has announced it is considering an all-share offer worth about $1.17 billion to acquire Germany’s Northern Data.

Rumble’s Strategy to Acquire Key Northern Data Units

The acquisition plan focuses on gaining full control of two Northern Data divisions: Taiga, which provides GPU-based cloud services, and Ardent, which operates large-scale data centers. Rumble would issue new Class A shares in exchange for Northern Data’s outstanding stock. Executives at Rumble believe this move will transform the company into a major player in the artificial intelligence (AI) cloud computing sector, with assets capable of supporting large-scale workloads and competing globally.

Northern Data’s GPU Assets and Data Center Infrastructure

Taiga, Northern Data’s cloud unit, holds one of the largest collections of high-end Nvidia GPUs on the market, including approximately 20,480 H100 chips and over 2,000 H200 units. Alongside Taiga, Rumble targets Ardent, Northern Data’s data center arm. Northern Data operates five wholly owned data center sites with a combined potential energy capacity close to 850 megawatts. Additional facilities are located in strategic co-location sites, offering flexibility for future expansion. Rumble intends to integrate both units directly into its operations. The company stated:
"Upon acquiring all outstanding Northern Data shares, Rumble expects that it would integrate Ardent, Northern Data’s data center business, and Taiga, Northern Data’s GPU as a service business, into Rumble’s existing operations."

Proposed Share Exchange and Ongoing Negotiations

If the acquisition proceeds, each Northern Data share would be exchanged for 2.319 newly issued Rumble Class A shares. Should all Northern Data shareholders participate, they would collectively hold about one-third of the merged entity’s equity. The final exchange ratio is subject to confirmatory due diligence and ongoing negotiations. A significant factor is Northern Data’s plan to sell its Peak Mining cryptocurrency unit to private Bitcoin miner Elektron Energy for approximately $235 million, which could influence the final terms. Northern Data’s board has expressed willingness to continue discussions with Rumble to advance the potential deal.

Tether’s Stake and Rumble’s Digital Asset Growth

A key element in the takeover discussions is Tether, the largest issuer of U.S. dollar-backed stablecoins. Tether holds a controlling 54% stake in Northern Data and approximately 48% of Rumble. In December 2024, Tether invested $775 million into Rumble, signaling strong support for the acquisition.
"Tether, the majority shareholder of Northern Data, has indicated it would support the transaction. Following consummation of the potential transaction, Tether would become an important customer of Rumble, with a multi-year commitment to purchase GPUs."
Chris Pavlovski, Rumble’s chairman and CEO, will maintain majority voting control through his shareholdings. He supports the acquisition and plans to approve the transaction via written consent. After completion, Tether is expected to hold the largest stake in Rumble’s Class A common shares. In 2024, Rumble began adding Bitcoin to its balance sheet and has accumulated 210.8 BTC, valued at over $25 million at current prices.
Source: Rumble Eyes Global AI Expansion with $1.17 Billion Northern Data Deal

Frequently Asked Questions (FAQ)

Acquisition Details

Q: What is the primary goal of Rumble's proposed acquisition of Northern Data? A: Rumble's primary goal is to expand its global presence in the artificial intelligence (AI) infrastructure market by acquiring Northern Data's key GPU cloud services (Taiga) and data center operations (Ardent). Q: What is the total value of Rumble's offer for Northern Data? A: Rumble is considering an all-share offer worth approximately $1.17 billion. Q: Which specific divisions of Northern Data is Rumble most interested in acquiring? A: Rumble is primarily interested in acquiring Taiga (GPU cloud services) and Ardent (data center operations).

Northern Data's Capabilities

Q: What kind of GPU assets does Northern Data's Taiga division possess? A: Taiga holds a significant collection of high-end Nvidia GPUs, including approximately 20,480 H100 chips and over 2,000 H200 units. Q: What is the energy capacity of Northern Data's data center facilities? A: Northern Data operates five wholly owned data center sites with a combined potential energy capacity close to 850 megawatts.

Deal Structure and Negotiations

Q: How would Northern Data shareholders be compensated in the proposed deal? A: Each Northern Data share would be exchanged for 2.319 newly issued Rumble Class A shares. Q: What is the potential impact of Northern Data's sale of its Peak Mining unit on the acquisition? A: Northern Data's plan to sell its Peak Mining unit for approximately $235 million could influence the final terms of the acquisition.

Key Stakeholders and Support

Q: What role does Tether play in this potential acquisition? A: Tether is a major stakeholder, holding a controlling stake in Northern Data and a significant stake in Rumble. Tether has indicated its support for the transaction and plans to be a customer of Rumble post-acquisition. Q: Who will maintain majority voting control in the merged entity? A: Chris Pavlovski, Rumble's chairman and CEO, will retain majority voting control.

Crypto Market AI's Take

Rumble's strategic move to acquire Northern Data signifies a significant pivot towards AI infrastructure, directly competing in a high-growth sector. This acquisition aligns with the broader trend of companies looking to secure robust computing power for AI development and deployment. The substantial Nvidia GPU inventory through Taiga is particularly attractive, as these processors are the backbone of modern AI workloads. By integrating Northern Data's assets, Rumble aims to position itself as a key player in the AI cloud computing landscape, potentially leveraging its existing user base and digital asset holdings. This move also highlights the increasing convergence of traditional tech platforms and the cryptocurrency ecosystem, as evidenced by Tether's substantial investment and future customer commitment. For businesses involved in AI and blockchain, understanding such strategic consolidations is crucial for navigating market dynamics.

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