usexpansion

Tether-Backed Rumble Announces Intent to Acquire Northern Data, Signaling a Major Push into US AI Infrastructure.

Tether's backing of Rumble's acquisition of Northern Data signals its ambition to expand its influence within the U.S., particularly in the artificial intelligence (AI) and decentralized technology sectors. This strategic move, along with a planned U.S.-specific stablecoin, is part of a broader effort to compete with centralized Big Tech companies and secure a stronger footprint in the U.S. market.
Details of the Rumble and Tether deal:
Rumble, a video-sharing and cloud platform, is set to acquire Northern Data, a German AI infrastructure company, for approximately $767 million in a stock deal.
Tether, a major stablecoin issuer and existing investor in both companies, will play a central role in the merged entity.
Tether invested $775 million in Rumble in December 2024.
Following the acquisition, Tether will become a major customer, committing to a $150 million GPU service purchasing deal and a $100 million advertising deal with the combined company.
Rumble will gain access to Northern Data's substantial GPU fleet (over 22,000 Nvidia GPUs) and data centers, allowing it to compete in the high-performance computing market.
Tether's broader U.S. strategy:
Expansion into AI infrastructure: The Northern Data deal demonstrates Tether's investment strategy in AI and its aim to build an AI ecosystem that rivals major centralized tech firms.
New U.S.-specific stablecoin: Tether plans to launch a compliant U.S. stablecoin, USAT, in partnership with other entities to serve American users. The launch is aimed at adhering to new regulations under the GENIUS Act.
Creating open platforms: Both Tether and Rumble share a vision of developing open platforms as alternatives to centralized "censor-prone Big Tech". The Rumble Wallet is another component of Tether's plan for a digital payment system in the U.S..
Reinforcing dollar dominance: The move into the U.S. stablecoin market is also seen as a way to reinforce the dollar's global leadership through the crypto space.
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