Rumble, a video platform and cloud services provider from the US, is exploring a share swap deal with Northern Data, a company specializing in AI and High-Performance Computing solutions. This move is seen as a strategic alignment to enhance Rumble’s presence in AI, data privacy, and independent infrastructure globally. The transaction is projected to position Tether as the largest holder of Rumble’s Class A stock, potentially reshaping the business dynamics in AI cloud platforms. The discussions are in the early stage, and if the deal is executed, strategic alignments and resource optimization are anticipated.
In earlier occasions, Rumble has shown keen interest in expanding its footprint within AI and cloud services. In February 2025, Tether committed an investment of $775 million into Rumble to compete with major tech companies, aiming to increase their competitiveness in the cloud service domain. This current potential deal continues that trajectory, focusing on enhancing its infrastructure capabilities across global markets. The companies are yet to complete due diligence procedures, and any subsequent steps will depend on subsequent developments.
Competitive Benefits
The proposed share swap suggests that for every Northern Data share, shareholders would receive 2.319 new Rumble Class A shares. When completed fully, Northern Data’s investors would possess around 33.3 percent of Rumble shares. The exchange ratio could be modified contingent on the outcome of ongoing assessments and potential sales of Northern Data’s Peak Mining unit. This aligns with the integrated goal of both companies in democratizing GPU-as-a-service and data infrastructure enhancement. Strategic benefits from such a merger are expected to develop more competitive AI solutions leveraging combined resources and capabilities.
What is Tether’s Plan?
Tether’s involvement in this transaction is pivotal, as it plans to trade its entire 54% stake in Northern Data for new Rumble Class A shares or pre-funded warrants. This step increases Tether’s position in Rumble, demonstrating a keen interest in utilizing Rumble’s cloud platform for broader market penetration. This strategy confirms Tether’s previous investments aiming to leverage Rumble’s infrastructure in expanding its video and cloud services.
Rumble also intends to integrate Northern Data’s resources, including its data center business, Ardent, and GPU services under Taiga, into its operations. Taiga is equipped with a substantial number of Nvidia (NASDAQ:NVDA) GPUs, which include H100s and H200s, bolstering Rumble’s service capabilities through high-capacity infrastructure. The consolidation will offer enhanced GPU infrastructure, critical for handling AI and high-demand computing tasks. Five data centers, with a capacity nearing 850 MW, are expected to be incorporated into Rumble’s operational blueprint.
On completion, proceeds from the Peak Mining sale will potentially be used to repay Northern Data’s debt to Tether, while surplus loans would carry over under revised terms, remaining Northern Data’s responsibility. Rumble‘s assurance lies in separating its financial obligations from Northern Data’s debts, preserving its baseline financial stability through the transition.
The proposed consolidation outlines significant strides toward optimizing AI cloud services by pooling extensive resources and infrastructure. This decision aligns with the desire to enhance operational efficiencies and deliver robust AI and comprehensive computing solutions. If successful, this share swap reflects a collaborative approach that leverages the strengths of both entities.
