Rumble’s ceo posted yesterday that by mid june they are entering the ai compute as a service market to compete with the world’s largest hyperscalers and stock jumped 6.5% The backstory is rumble is acquiring northern data, a german ai infrastructure company with 22,400 nvidia h100 and h200 gpus ,250 megawatts of data center capacity across 10 facilities. The deal is valued at roughly 970 million in an all stock transaction and is expected to close in june. Tether has pledged $150 million over two years for gpu services once the deal closes. Their ceo says cloud services will overtake the video platform as rumble’s largest revenue generator on one hand this sounds absurd as aws, azure, and google cloud have millions of gpus, decades of infrastructure experience, and hundreds of billions in annual revenue. Rumble did $25.5 million in revenue last quarter and missed analyst estimate and bringing 22,400 gpus to a fight against companies with millions is like bringing a water pistol to a naval battle Rumble is explicitly marketing to companies and developers who don’t want to be dependent on big tech cloud providers, there’s a real market for that even if it’s niche. Some companies genuinely don’t want their ai workloads running on google or amazon infrastructure for competitive or ideological reasons. The question i keep coming back to is whether the ai compute market is winner take all or whether theres room for smaller players serving specific segments. The analogy to the video platform might actually apply, rumble never competed with youtube on scale but carved out a real business serving an audience youtube wasn’t prioritizing. every chatgpt prompt, every claude conversation, video generated through kling or magichour, every ai powered sales sequence, image midjourney produces.The compute market is massive and growing, the question is whether 22,400 gpus and a freedom first brand is enough to capture a meaningful slice of it or whether rumble is bringing a knife to a gunfight the nfl teams already using rumble cloud for video storage is an interesting proof point that real enterprises are willing to use the infrastructure. whether that extends to ai compute workloads is a different question what’s everyone’s read on whether this is a legitimate pivot or a stock price play? submitted by /u/Healty_potsmoker
Originally posted by u/Healty_potsmoker on r/ArtificialInteligence