Headline: Rumble Partners with Tether for Strategic Acquisition of German AI Firm Northern Data Translated: Rumble Partners with Tether for Strategic Acquisition of German AI Firm Northern Data

The Canadian video hosting platform and cloud storage provider Rumble has reached an agreement to merge its business with the German AI infrastructure firm Northern Data.

According to a press release, this deal will enhance the capabilities of Rumble Cloud by leveraging a network of data centers planned to operate at 180 MW and to host approximately 22,400 Nvidia H100 and H200 GPUs.

The acquisition will take place through a stock exchange. Current investors of Northern Data will receive around 30% equity in the combined entity. Based on the share price of Rumble at the close on Friday, the deal’s value is estimated at about $767 million.

The technology company will also allocate $200 million for potential rewards to shareholders who accept the terms, contingent on the flagship data center of Northern Data in Corpus Christi, Texas, meeting specific performance targets.

Tether holds a stake in the German firm. As part of a strategic partnership, the stablecoin issuer has also invested $775 million in Rumble.

The USDT issuer guaranteed that after the acquisition, it would purchase $150 million worth of AI computing services from the merged company over three years. Additionally, Tether provided Rumble with advertising commitments totaling $200 million over the next two years.

“Northern Data. Tether. Rumble. This is how we are building the AI ecosystem of the future from the ground up,” stated Rumble CEO Chris Pavlowski.

On November 5, Northern Data announced the sale of its bitcoin mining division, Peak Mining, to an undisclosed buyer. The initial payment will amount to $50 million, with additional payments possibly reaching $150 million, based on the profitability of the data center in Corpus Christi following the transaction with Rumble. Of the 600 MW of net capacity available at the site, 100 MW is utilized for cryptocurrency mining.

It’s worth noting that Northern Data announced in October 2024 that it was seeking a buyer for Peak Mining to focus on AI services.