425: Rumble Acquires Northern Data, Boosts AI & Cloud Ambitions

Rumble Inc. announced its Q3 2025 financial results and a definitive agreement to acquire Northern Data AG, significantly expanding its AI and cloud infrastructure capabilities.

Summary

• Rumble reported Q3 2025 revenue of $24.8 million, a slight decrease from $25.1 million in Q3 2024.
• Monthly Active Users (MAUs) decreased to 47 million in Q3 2025 from 51 million in Q2 2025, attributed to a slowdown in news/political commentary and summer seasonality.
• Average Revenue Per User (ARPU) increased by 7% to $0.45 in Q3 2025 compared to Q2 2025, indicating improved monetization despite fewer users.
• Net loss significantly improved to $16.3 million in Q3 2025 from $31.5 million in Q3 2024.
• Adjusted EBITDA loss improved by $8.4 million to $15.1 million in Q3 2025 compared to Q3 2024.
• Total liquidity stood at $293.8 million as of September 30, 2025, including $269.8 million in cash and cash equivalents and 210.82 Bitcoin valued at $24.0 million.
• Rumble signed a business combination agreement to acquire Northern Data AG, a leader in AI and high-performance-computing (HPC) infrastructure, through an all-stock exchange offer.
• The acquisition will add approximately 22.4K NVIDIA GPUs (20.4K H100s, 2K H200s) and a globally distributed network of 9 data centers, including 4 owned locations.
• Tether committed to become an anchor customer of the combined group, with an initial purchase commitment of up to $150 million of GPU services over a two-year period.
• Tether also committed $100 million in advertising on Rumble's platform over a two-year period, starting Q1 2026.
• The transaction is expected to accelerate Rumble's international expansion, provide significant revenue growth opportunities, and enhance its creator, video, and advertising AI roadmap.
• Northern Data will delist from the open market shortly after the closing of the exchange offer.

Sentiment

Score: 9

Explanation: The filing presents a highly positive strategic outlook, driven by a transformative acquisition that significantly expands Rumble's capabilities into the high-growth AI and cloud infrastructure sectors. The substantial financial commitments from Tether as an anchor customer for both GPU services and advertising provide strong validation and future revenue visibility. While there are some short-term dips in revenue and MAUs, the dramatic improvement in net loss and Adjusted EBITDA, coupled with a robust liquidity position, indicates improving operational efficiency and financial health. The strategic pivot and partnerships are game-changing for the company's long-term growth potential.

Positives

• Net loss improved significantly to $16.3 million in Q3 2025 from $31.5 million in Q3 2024.
• Adjusted EBITDA loss improved by $8.4 million to $15.1 million in Q3 2025 compared to Q3 2024.
• Average Revenue Per User (ARPU) increased by 7% to $0.45 in Q3 2025 from the prior quarter, indicating better monetization.
• Strong liquidity position with $293.8 million as of September 30, 2025.
• Strategic acquisition of Northern Data AG will immediately scale Rumble's cloud and data center business with 22.4K NVIDIA GPUs and 9 data centers.
• Tether committed to a significant anchor customer agreement for up to $150 million in GPU services over two years, securing future revenue for the combined entity.
• Tether committed $100 million in advertising spend on Rumble over two years, boosting monetization and ecosystem expansion.
• The acquisition expands Rumble's international footprint, particularly in Europe, and strengthens its position in the high-growth AI market.
• Cost of services decreased by $11.2 million in Q3 2025 compared to Q3 2024, primarily due to a $11.9 million reduction in programming and content costs.
• Successful restoration of the Rumble platform in France following a favorable court ruling.

Negatives

• Revenue slightly decreased to $24.8 million in Q3 2025 from $25.1 million in Q3 2024.
• Monthly Active Users (MAUs) declined to 47 million in Q3 2025 from 51 million in Q2 2025.
• The decrease in MAUs is attributed to a slowdown in news/political commentary outside of a U.S. election cycle and content creator seasonality.
• Sales and marketing expenses increased by $1.1 million to $5.1 million in Q3 2025 compared to Q3 2024.
• General and administrative expenses increased by $0.8 million to $10.5 million in Q3 2025 compared to Q3 2024.

Risks

• Uncertainty regarding the timing, receipt, and terms of governmental and regulatory approvals for the Northern Data transaction, which could reduce anticipated benefits or cause abandonment.
• Risk that the condition for the publication of the offer document, related to an independent investigation into Northern Data's VAT tax-related allegations, may not be satisfied.
• Potential for any event, change, or circumstances to arise that could lead to the termination of the transaction.
• Challenges in successfully integrating Rumble's and Northern Data's businesses and achieving expected synergies, which may take longer or be more costly than anticipated.
• Possibility that the requisite number of Northern Data shares may not be tendered in the exchange offer.
• Risk that the parties may not be able to satisfy the conditions to closing of the proposed transaction in a timely manner or at all.
• Disruption of management time from ongoing business operations due to the proposed transaction.
• Adverse effects on the market price of Rumble's Class A common stock or Northern Data's capital stock due to the announcement or consummation of the proposed transaction.
• Difficulty in retaining customers, key personnel, and maintaining relationships with suppliers and customers for both Rumble and Northern Data post-transaction.
• Fluctuations in revenue due to lengthy sales and approval processes required by major service providers for new products.
• Potential breaches of information systems and cyber-attacks.
• Inability of Rumble, Northern Data, or the post-combination company to effectively compete, including through product improvements and development.
• Risks associated with holding Bitcoin as part of the treasury strategy.
• Exposure to significant regulatory, operational, security, and market risks related to the crypto wallet operation.
• Failure to comply with applicable privacy laws, age verification, and child online safety laws.
• Reliance on data from third parties for performance metrics, with potential for inaccuracies harming reputation.
• Dependence on third-party vendors, including internet service providers, advertising networks, and data centers.
• Potential for increased hosting and delivery costs.
• Fixed payment obligations for content creator incentives that may not be contingent on actual revenue or performance metrics.
• Identified material weakness in internal control over financial reporting as of December 31, 2024, which if not remediated, could impact accurate financial reporting.

Future Outlook

Rumble anticipates a transformational shift by building a 'Freedom-First' AI ecosystem, aiming to become a leader in AI infrastructure. The acquisition of Northern Data is expected to provide immediate scale in cloud and data center businesses, expand international presence, and accelerate AI innovation for video, creators, and advertising. The company plans to continue building out this ecosystem with new verticals, including financial services (Rumble Wallet), AI chatbots, productivity suites, and new web navigation solutions. The exchange offer for Northern Data is expected to close in Q2 2026, with Tether committed as an anchor customer for GPU services and advertising, securing future revenue streams.

Management Comments

• Chris Pavlovski, Chairman and CEO of Rumble, stated: "Northern Data. Tether. Rumble. This is how we build the AI ecosystem for the future, from the ground up."
• Chris Pavlovski emphasized: "Freedom-First is the new way forward for tech. Unlike Big Tech, it represents a future where technology empowers rather than controls. Built on the principles of free speech, privacy, independence, and resilience, Freedom-First seeks to ensure that people—not unaccountable digital gatekeepers—are in charge."
• Chris Pavlovski added: "Our vision is to continue building out this ecosystem with the addition of new verticals, including financial services like Rumble Wallet, AI chatbots and agents, productivity suite with email and storage, and new web navigation solutions all in the name of freedom, privacy, independence and resilience."
• John Hoffman, co-CEO of Northern Data, commented: "Rumble's Freedom-First initiative combined with Tether's vision alongside Northern Data's robust asset base creates a highly disruptive force in the Ai infrastructure market."
• Chris Pavlovski noted regarding Tether's commitment: "At Rumble, with the exchange offer for Northern Data, we will be in a position to expand our partnership with Tether, supply them as an anchor customer on our Freedom-First AI infrastructure and help them execute on their game-changing AI plans rooted in privacy, independence and resilience."
• Chris Pavlovski stated on advertising commitment: "Tether's commitment to our Freedom-First video platform proves that Rumble and the creators who have stood unwaveringly for free speech are the foundation for the future of advertising and creator monetization."

Industry Context

This announcement positions Rumble as a significant emerging player in the rapidly expanding AI and high-performance computing (HPC) infrastructure market, directly challenging the dominance of 'Big Tech' companies. By acquiring Northern Data, Rumble is diversifying its business beyond its core video-sharing platform into a critical, high-growth sector. The strategic emphasis on a 'Freedom-First' technology platform, coupled with strong backing from Tether, aims to differentiate Rumble by offering decentralized, privacy-focused alternatives to existing cloud and AI services. This move reflects a broader industry trend towards distributed computing and the increasing demand for GPU-intensive resources for AI development, while also tapping into a niche market seeking alternatives to mainstream platforms.

Comparison to Industry Standards

• Rumble, post-acquisition of Northern Data, will command a GPU fleet of over 22,000 NVIDIA GPUs and 9 data centers, with a combined market capitalization of over $3.5 billion.
• This compares to NVIDIA, which has approximately 300,000 GPUs, 33 data centers, and a market capitalization exceeding $55 billion (as of November 7, 2025).
• Amazon (presumably AWS, though not explicitly stated) is noted with approximately 30,000 GPUs, 7 data centers, and a market capitalization over $25 billion (as of November 7, 2025).
• While Rumble's combined GPU fleet is smaller than industry giants like NVIDIA and Amazon, the acquisition provides immediate scale and a competitive entry point into the GPU-as-a-service market, particularly with its focus on a 'Freedom-First' ecosystem and anchor customer commitments from Tether.

Legal Proceedings

• An independent investigation is to be conducted by Northern Data into certain VAT tax-related allegations, which is a condition to the publication of the offer document.

Related Party Transactions

• Tether, which made a $775 million strategic investment into Rumble earlier in the year, has committed to become an anchor customer of the combined Rumble-Northern Data entity, purchasing up to $150 million of GPU services over two years.
• Tether also committed $100 million in advertising on Rumble's platform over a two-year period, starting Q1 2026.
• Shareholders affiliated with Northern Data's co-CEO, Aroosh Thillainathan, and another significant shareholder, collectively representing approximately 72% of Northern Data's outstanding shares, have committed to sell their shares to Rumble at the same exchange ratio as the public offer.

Stakeholder Impact

• **Shareholders (Rumble):** Potential for significant long-term value creation through diversification into high-growth AI/cloud markets, increased revenue opportunities, and strategic partnerships. Dilution from new share issuance for the acquisition (Northern Data shareholders will own ~30.4% pro forma).
• **Shareholders (Northern Data):** Opportunity to exchange shares for Rumble Class A common stock, gaining exposure to a U.S.-listed company and a broader 'Freedom-First' ecosystem. Potential for a cash payment up to $200 million contingent on asset sale.
• **Employees (Rumble & Northern Data):** Potential for expanded roles and opportunities within a larger, more diversified technology company focused on AI and cloud. Integration risks and potential for organizational changes.
• **Customers (Rumble):** Enhanced services through AI integration, improved discoverability, and a broader 'Freedom-First' technology ecosystem. New offerings in cloud and AI services.
• **Customers (Northern Data):** Continued access to high-performance computing and AI infrastructure, potentially with expanded capabilities and a more robust platform under Rumble's ownership.
• **Content Creators (Rumble):** Accelerated AI innovation for video, enhanced monetization opportunities, and expanded distribution through partnerships like Cumulus Media and Perplexity.
• **Suppliers & Creditors:** Potential for new business opportunities with the combined entity, but also risks associated with integration and changes in operational structure.

Next Steps

• Rumble will submit a voluntary public exchange offer to all shareholders of Northern Data AG.
• The offer document for the exchange offer and other related information will be published on www.rumble-offer.com.
• Northern Data shareholders will receive 2.0281 newly issued Class A Rumble shares for each Northern Data share tendered.
• Tether and other significant Northern Data shareholders (representing ~72% of shares) have committed to sell their shares to Rumble.
• A potential cash payment of up to $200 million may be made to Northern Data shareholders, contingent on the successful sale/commercialization of Northern Data's Corpus Christi location.
• The commencement of the acceptance period for the offer and closing of the transaction are expected to occur in the second quarter of 2026.
• Northern Data will delist from the open market shortly after the closing of the exchange offer.
• Tether's $150 million GPU services commitment will become effective upon the closing of the Northern Data acquisition.
• Tether's $100 million advertising commitment will begin in the first quarter of 2026.
• Rumble will continue to build out its 'Freedom-First' ecosystem with new verticals, including financial services (Rumble Wallet), AI chatbots, productivity suites, and new web navigation solutions.

Key Dates

Recommendation

The acquisition of Northern Data AG represents a highly strategic and transformative move for Rumble, positioning it as a significant player in the burgeoning AI and high-performance computing infrastructure market. This diversification beyond its core video platform into a critical, high-growth sector, backed by substantial commitments from Tether (up to $150 million in GPU services and $100 million in advertising), provides strong validation and a clear path to future revenue. While Q3 2025 saw a slight dip in revenue and MAUs, the dramatic improvement in net loss and Adjusted EBITDA indicates improving operational efficiency. The 'Freedom-First' ethos offers a unique market differentiator. Despite integration risks and the inherent volatility of the AI sector, the long-term growth potential, strategic alignment, and anchor customer support make Rumble a compelling 'strong buy' for investors seeking exposure to the future of decentralized AI and cloud services.

Keywords

AI infrastructure, cloud services, GPU as a service, high-performance computing, video platform, digital media, acquisition, Northern Data, Tether, Freedom-First, Q3 2025 earnings, financial results, MAU, ARPU, net loss, Adjusted EBITDA, data centers, NVIDIA GPUs, strategic partnership