Rumble, a United States-based video-sharing platform and cloud service provider, has announced plans to acquire Germany-based high-performance computing and artificial intelligence company Northern Data in a stock-based deal valued at approximately $1.17 billion.
The agreement, which is still subject to shareholder approval and regulatory review, will allow Northern Data shareholders to exchange each of their shares for 2.319 newly issued Rumble Class A shares. Once the transaction is completed, Northern Data shareholders will hold around 33.3 percent of Rumble, while Tether, already the controlling shareholder of Northern Data, will become the largest single shareholder of Rumble Class A common stock.
Tether, the stablecoin issuer and Northern Data’s largest shareholder, has voiced strong support for the deal and committed to a multi-year GPU purchase agreement with Rumble after the acquisition. This partnership is expected to combine Tether’s financial strength with Rumble’s content and cloud infrastructure to enhance the merged entity’s capabilities in data processing and artificial intelligence development.
Rumble stated that the move is part of its long-term plan to expand its presence in AI and cloud computing. In December 2023, the company secured a $775 million investment from Tether to strengthen its position as an alternative to YouTube. Adding Northern Data’s GPU infrastructure is expected to boost Rumble’s ability to deliver high-performance computing services while promoting global data privacy and digital independence.
Northern Data has acknowledged the offer and expressed readiness to continue negotiations. Chief Executive Officer Chris Pavlovski will keep majority voting rights and has pledged full support for the acquisition. In its recent financial update, Northern Data reported a 72 percent year-on-year revenue increase in the first half of 2025, driven by strong growth in its cloud services and Bitcoin mining operations.
The market reacted quickly to the announcement. Rumble’s shares rose 20 percent in pre-market trading to $9.48, while Northern Data’s shares dropped over 13 percent, reflecting investor uncertainty over the deal’s completion and potential integration challenges. However, Tether’s backing and strong presence in the cryptocurrency sector are seen as factors that could help ensure the success of the acquisition.
Reports from mid-August 2025 suggested an initial valuation of $1.2 billion, but the revised $1.17 billion figure indicates possible changes in terms or valuations during ongoing negotiations. The deal highlights the growing intersection between traditional technology companies and cryptocurrency-linked businesses in the AI and HPC industries. Rumble aims to use Tether’s liquidity to accelerate its expansion into cloud and AI-driven services.
If completed, the acquisition could significantly reshape competition in the high-performance computing and AI infrastructure market, giving Rumble the tools to scale its computing capacity and provide more advanced data-focused solutions. Integrating Northern Data’s GPU infrastructure could give Rumble a considerable technological advantage in the rapidly evolving AI-driven global economy.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter |The Mainstream formerly known as CIO News Whatsapp Channel | The Mainstream formerly known as CIO News Instagram
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
