RUM Group stock climbed sharply on Monday, defying a broader pullback in technology shares, after news broke of a massive computing agreement with AI developer Anthropic. Shares jumped more than 20% intraday to touch $8.73, their highest level since September 4, as traders reacted to reports that the company formerly known as Rumble had landed one of the largest deals in its history.
The agreement, first reported by The Information and since confirmed by multiple outlets, is a six-year, $13.7 billion computing power arrangement under which RUM Group will supply Anthropic with GPU capacity from a data center under construction in Maysville, Georgia. As part of the deal, Anthropic is also set to receive options to buy up to roughly 51 million RUM Group shares at a token price of one cent each, a structure similar to equity arrangements Anthropic has used in other infrastructure partnerships.
The rally underscores how quickly capital has been rotating into so-called neocloud operators, the smaller data center firms racing to supply computing power to AI labs. It also marks a turning point for RUM Group, which has spent the past year trying to convince investors that its future lies less in online video and more in AI infrastructure.
A rebrand built around AI compute
RUM Group, whose largest shareholder is stablecoin issuer Tether, changed its name from Rumble earlier this year to reflect a broader strategy. The company still owns Rumble, the video platform popular with conservative audiences and known for hosting Truth Social and White House livestreams, but its newer AI data center unit, Quake AI, is now positioned as the bigger growth driver.
Quake AI currently operates more than 22,000 Nvidia H100 and H200 chips and has been working to expand that footprint. The company has also been consolidating control of Northern Data, recently lifting its ownership stake to 98% with plans to move to full ownership.
Anthropic's compute buildout keeps expanding
The RUM Group agreement is the latest in a string of large compute commitments Anthropic has made over the past year. Reporting on the broader buildout indicates Anthropic's compute agreements, not counting the RUM Group deal, now add up to at least 14.8 gigawatts of capacity and could cost as much as $517 billion over the next decade.
| Partner | Reported deal value | Nature of agreement |
|---|---|---|
| RUM Group | $13.7 billion over 6 years | GPU compute from Georgia data center, plus equity options |
| Nscale | $45 billion | Compute capacity |
| Lambda | Up to $50 billion | Compute capacity |
| SpaceX | Roughly $1.2 billion per month | Compute capacity |
| CoreWeave | Undisclosed | Compute capacity |
What's confirmed versus what's still developing
The dollar figure and six-year term of the RUM Group deal have been corroborated across multiple reports citing people familiar with the matter, and RUM Group itself disclosed a $13.7 billion GPU services agreement in a prior SEC filing without naming the customer. Neither Anthropic nor RUM Group has issued a formal joint statement confirming every detail of the arrangement, so specifics like the exact equity terms should still be treated as reported rather than officially finalized.
Video business slows as data center revenue takes over
RUM Group's most recent quarterly results showed revenue of $40.4 million, up 58% from a year earlier, with Northern Data contributing $10 million of that total. Management has guided for third-quarter revenue of between $83 million and $93 million and has said Quake AI alone has the potential to generate $3 billion in annual revenue once fully scaled.
That growth is coming as the legacy Rumble platform loses ground. Data from SimilarWeb shows traffic to Rumble fell 2.3% last month to 33.2 million visits, even as larger rivals continued growing. Given the pace of the AI infrastructure ramp, analysts' current full-year revenue estimate of $239 million for RUM Group may prove conservative if the deal closes as reported.
Technical picture shows a sharp reversal
RUM Group shares had been sliding for months before this week's news, falling from an August high near $10.59 to a low around $6.90 last Friday. That move formed a hammer candlestick pattern, often seen as an early reversal signal, and the stock has since pushed back above its 50-day moving average.
Reasons for caution
Traders have seen this pattern before with other neocloud names: a mega-deal announcement triggers a sharp rally that fades once the market digests how much additional capital the company will need to build out the promised capacity. RUM Group's push into AI infrastructure requires heavy spending, and further capital raises are a realistic possibility that could cap or reverse near-term gains in RUM Group stock.
Disclaimer: This content was partially produced with the help of AI tools.
