Top stablecoin issuer Tether and YouTube rival Rumble are collaborating in a $1.17 billion venture into artificial intelligence (AI).
In a new blog post, the video-sharing website Rumble says it’s purchasing the AI firm Northern Data from Tether, who will turn around and become a customer of Rumble with a multi-year promise to purchase graphics processing units (GPUs).
According to Rumble – the same company that hosts President Donald Trump’s Truth social – the acquisition “would fundamentally transform Rumble into a global AI cloud leader” as it intends to integrate both Northern Data’s data center business, Ardent, and its GPU-as-a-service business, Taiga, which has a “significant” number of Nvidia GPUs, into its model.
Though the purchase has yet to be finalized, part of the deal includes Tether becoming a customer of Rumble after completion, while also being the single largest holder of its class A common stock.
In the blog post, Rumble says that the acquisition would advance both firms’ vision to “democratize [computing] while providing unfettered access to infrastructure.”
In a recent article, Reuters calculates that Rumble is considering offering 2.319 shares for each Northern Data share, which values Northern Data at about $18.3 per share, representing a discount of about 32% from its last closing price.
Reuters estimates the total value of the deal to be $1.17 billion, also noting that Tether currently owns 48% of Rumble and 54% of Northern Data.
In December 2024, Tether invested $775 million into Rumble. At the time, Tether chief executive Paolo Ardoino said the firm plans to integrate crypto payments into the video-sharing platform.
“Rumble’s dedication to fostering open communication and innovation makes them an ideal ally as we continue building the infrastructure for a more decentralized, inclusive future. Lastly, beyond our initial shareholder stake, Tether intends to drive towards a meaningful advertising, cloud, and crypto payment solutions relationship with Rumble.”
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