Rumble, Northern Data Weigh $4.5 Billion AI Cloud Merger

Rumble Inc. is considering an all-stock deal to acquire German data center company Northern Data AG for $1.17 billion. The combined entity would be worth $4.5 billion. The deal would create a cloud-computing provider and boost Rumble's bid to compete with Silicon Valley giants. Northern Data's shareholders would own about a third of Rumble. The deal is a significant discount to Northern Data's previous valuation of up to $16 billion.

Title: Rumble Inc. Plans All-Stock Acquisition of Northern Data AG for $1.17 Billion

Rumble Inc., a U.S. video platform and cloud services provider, is considering an all-stock deal to acquire German data center company Northern Data AG for approximately $1.17 billion. The proposed acquisition, valued at around $1.2 billion, would see Northern Data's shareholders owning about a third of the combined entity. The deal aims to create a powerful cloud-computing provider capable of competing with Silicon Valley giants.

Northern Data's data centers and GPU infrastructure are significant assets for Rumble. The German company operates five data centers with 850 MW of energized capacity, including a 180 MW site in Maysville, Georgia. Additionally, its Taiga unit boasts 20,480 Nvidia H100 GPUs and 2,048 H200 GPUs, critical for AI model training and deployment. The integration of these assets into Rumble's operations would enhance its AI infrastructure capabilities, positioning it to capture a growing market.

The all-stock structure of the deal preserves Rumble's cash reserves, which are crucial for scaling operations and executing the integration. However, it also dilutes existing shareholders. Northern Data's shareholders would own approximately 33.3% of Rumble's shares post-merger. This structure creates a shared incentive for long-term value creation.

Tether, Northern Data's majority shareholder, supports the transaction. Tether's 54% stake in Northern Data will convert to a 33.3% stake in Rumble post-transaction. Tether's commitment to become a multi-year customer of Rumble ensures a steady revenue stream, validating the commercial viability of the GPU-as-a-service (GaaS) model. The stablecoin giant's financial engineering, including amending its existing loan to Northern Data, demonstrates a sophisticated understanding of risk management.

The deal faces several challenges. Regulatory scrutiny, particularly in the U.S. and Germany, could delay or block the transaction. The need to divest Northern Data's Peak Mining unit adds complexity, as the proceeds from this sale will be used to reduce Tether's loan to Northern Data. Additionally, the integration of Northern Data's operations into Rumble's ecosystem will require significant operational and technical execution.

Rumble's CEO, Chris Pavlovski, has shown a track record of navigating complex transactions. The involvement of Guggenheim Securities and Willkie Farr & Gallagher as advisors further bolsters confidence in the deal's feasibility. For investors, this deal represents a high-conviction opportunity. The integration of Northern Data's assets could drive revenue growth through GPUaaS subscriptions, data center leasing, and strategic partnerships with enterprises adopting AI. The broader AI infrastructure market is projected to grow at a 30% CAGR through 2030.

However, the key question remains whether Rumble can scale this infrastructure profitably. If successful, the stock could see significant upside, particularly as AI adoption accelerates. Investors should monitor regulatory developments and the company's ability to manage integration costs.

References
1. [Rumble Inc. proposes all-stock acquisition of Northern Data AG to expand AI/GPUaaS infrastructure](https://www.ainvest.com/news/rumble-strategic-ai-expansion-northern-data-acquisition-transformational-stock-deal-unlocking-ai-cloud-leadership-gpu-service-dominance-backed-tether-multi-year-commitment-2508/)
2. [Rumble weighs near-$1.2 billion bid for German AI cloud firm Northern Data](https://www.reuters.com/business/rumble-weighs-near-12-billion-bid-german-ai-cloud-firm-northern-data-2025-08-11/)
3. [Rumble Inc. plans to acquire Northern Data AG in a $1.2B stock deal to dominate AI infrastructure](https://www.ainvest.com/news/rumble-strategic-ai-expansion-1-2-billion-bid-northern-data-evaluating-synergies-valuation-long-term-potential-2508/)