Rumble Inc. (RUM) announced on Thursday that it has signed a $270 million agreement with an unnamed third-party cloud customer, representing the company's largest customer commitment to date. The multi-year deal involves providing GPU cloud capacity powered by Nvidia's Blackwell B300 systems. The announcement comes as Rumble pursues its acquisition of Germany-based AI and cloud infrastructure provider Northern Data, part of a strategic push to build an independent AI and cloud ecosystem that does not rely on platforms controlled by major U.S. tech companies such as Google, Amazon, and Microsoft.
Rumble Signs $270 Million Multi-Year Cloud Agreement
According to an SEC filing, the multi-year agreement represents Rumble's largest customer commitment to date. Rumble will provide the customer with GPU cloud capacity powered by Nvidia's Blackwell B300 systems. The filing noted that if the agreement is commercially successful, terms could be modified for a much greater amount and period.
Northern Data Acquisition Adds Over 22,000 Nvidia GPUs
Rumble made a strategic move to acquire Germany-based AI and cloud infrastructure provider Northern Data to build an ecosystem that does not rely on platforms controlled by U.S. tech behemoths such as Google, Amazon, and Microsoft. The deal, which is expected to close sometime this month, will bolster the company's cloud capacity with more than 22,000 Nvidia GPUs.
RUM Stock Surges Nearly 25% Before Paring Gains on Thursday
Shares of video and cloud services platform Rumble Inc. drew significant investor attention on Thursday after the company announced the $270 million agreement. RUM stock surged nearly 25% after markets opened on Thursday, but started a downward trajectory shortly, paring most gains. At the time of writing, it was the top-trending ticker on Stocktwits.
Over 4.85 million RUM shares changed hands by 10:15 am ET on the NASDAQ, nearly double the average three-month trading volume. The stock has gained more than 36% so far this year but has declined just over 1% in the last 12 months. On Stocktwits, retail sentiment about RUM remained 'bullish' over the last 24 hours, while users noted the heavy trading volume.
FAQ
What did Rumble announce on Thursday?
Rumble announced on Thursday that it has signed a $270 million agreement with an unnamed third-party cloud customer. The multi-year deal represents the company's largest customer commitment to date and involves providing GPU cloud capacity powered by Nvidia's Blackwell B300 systems.
Why did RUM stock surge on Thursday?
RUM stock surged nearly 25% after markets opened on Thursday following the announcement of the $270 million cloud agreement. The stock later pared most gains during the trading session. Over 4.85 million shares traded by 10:15 am ET, nearly double the three-month average volume.
How does the Northern Data acquisition relate to this agreement?
The $270 million cloud agreement comes as Rumble pursues its acquisition of Germany-based AI and cloud infrastructure provider Northern Data. The Northern Data deal, expected to close this month, will add more than 22,000 Nvidia GPUs to Rumble's cloud capacity, supporting the company's strategy to build an independent AI and cloud ecosystem.
