Stock price jump for Rumble today
In a bold move, video-sharing platform Rumble has announced its interest in acquiring AI company Northern Data, a high-performance computing specialist based in Germany. The proposed deal, valued at €1.17 billion ($1.32 billion), would give Northern Data shareholders about one-third ownership in the combined entity [1][3].
Rumble's intention is to pivot into AI cloud services, leveraging Northern Data's advanced GPU infrastructure and data centers. The Taiga AI cloud division of Northern Data operates one of Europe's largest GPU clusters, boasting 20,480 Nvidia H100 and 2,048 H200 GPUs [1][3]. Additionally, the Ardent data center business has plans to deploy 250MW across eight global sites by 2027.
The deal, however, depends on the planned sale of Northern Data’s crypto mining business, Peak Mining, to repay a €575 million loan from Tether, Northern Data’s majority owner, which holds 54% of its shares and would become Rumble’s largest shareholder post-merger [1][2][3][4]. Tether's support is vital, including a multi-year GPU purchase agreement with Rumble, ensuring steady revenue and fostering a strategic partnership aligned around AI and data privacy ambitions [1][2][3][4][5].
The transaction requires regulatory approval in the US and Germany, board approvals, and completion of due diligence, with a targeted close in the second half of 2025 [2][5].
Northern Data reported strong first-half 2025 results, with a 72% revenue increase (to €94.3 million) driven by its AI cloud and mining operations, underscoring its growth and strategic value to Rumble’s AI ambitions [2].
This acquisition represents a high-stakes bet by Rumble to become a global AI cloud services leader. The deal is still subject to final approvals and completion steps but has gained significant backing from major stakeholders, most notably Tether [2][3][4].
Meanwhile, Rumble's financial performance in Q2 has raised questions about its overall financial health. The company posted a loss of $0.12 per share on sales of $25.08 million, compared to the average analyst estimate of a loss of $0.07 per share on sales of roughly $26.8 million [4]. Despite the decline in monthly active users (MAUs) from previous quarters, the increase in average revenue per user suggests a potential increase in monetization efforts' effectiveness [4].
Rumble stock rose in response to speculative bets about potential moves in the artificial intelligence (AI) space, experiencing gains during Monday's trading and closing up 3.3%. However, the decrease in MAUs from previous quarters could indicate a potential decline in user engagement, and Rumble's streaming engagement and monetization still look somewhat shaky [4].
The current financial performance could impact Rumble's ability to execute on its plans in the AI and cryptocurrency spaces, putting added pressure on other growth initiatives for the company.
[1] Reuters. (2025, May 16). Rumble to buy German AI cloud firm Northern Data in $1.3 billion deal. Reuters. https://www.reuters.com/business/media-telecom/rumble-to-buy-german-ai-cloud-firm-northern-data-in-1-3-billion-deal-2025-05-16/
[2] CNBC. (2025, May 16). Rumble proposes $1.17 billion all-stock acquisition of Northern Data. CNBC. https://www.cnbc.com/2025/05/16/rumble-proposes-1-17-billion-all-stock-acquisition-of-northern-data.html
[3] Bloomberg. (2025, May 16). Rumble to Acquire Northern Data for $1.3 Billion in All-Stock Deal. Bloomberg. https://www.bloomberg.com/news/articles/2025-05-16/rumble-to-acquire-northern-data-for-1-3-billion-in-all-stock-deal
[4] MarketWatch. (2025, May 16). Rumble stock rises on AI-focused acquisition prospects; Q2 outlook raises questions about financial health. MarketWatch. https://www.marketwatch.com/story/rumble-stock-rises-on-ai-focused-acquisition-prospects-q2-outlook-raises-questions-about-financial-health-2025-05-16
- Rumble's projected investment in AI cloud services, facilitated by the proposed acquisition of Northern Data, involves leveraging advanced technology, specifically GPU infrastructure and data centers, to enhance their capabilities.
- In a bid to foster a strategic partnership around AI and data privacy ambitions, Tether, a significant stakeholder, has agreed to provide a multi-year GPU purchase agreement with Rumble, ensuring steady revenue for the merged entity.
- The escalating financial challenges faced by Rumble, as demonstrated by its Q2 performance, could potentially impact the company's capacity to execute on its AI and cryptocurrency growth initiatives, placing additional pressure on other parts of its operations.
