RUM Group jumps 20% after reported $13.7B Anthropic deal

RUM Group jumped more than 20% to $8.73 on reports that it reached a $13.7 billion computing agreement with AI firm Anthropic. The companies have not confirmed the report.

RUM Group is the parent of video platform Rumble and AI data center unit Quake AI. The company has repositioned from a media-focused business to one emphasizing AI compute and data centers. Tether is listed as RUM Group’s largest shareholder. The company recently increased its stake in Northern Data to 98% and has said it plans to acquire the remaining shares.

Quake AI operates more than 22,000 Nvidia H100 and H200 chips and is expanding capacity, according to company statements. Management has forecast that Quake could support up to $3 billion in annual revenue if scaled as planned.

RUM Group reported $40.4 million in revenue in its most recent period, a 58% increase year over year. Northern Data contributed about $10 million to that figure. Management provided third-quarter revenue guidance of $83 million to $93 million. Analysts model annual revenue near $239 million for the company.

Traffic to Rumble declined about 2.3% last month to roughly 33.2 million visits, a metric that affects the platform’s ad and user-growth outlook.

Technically, the stock fell from an August high of $10.59 to a low of $6.90 last Friday before rallying on the Anthropic reports. The price reached its highest level since early September and moved back above its 50-day moving average.

Building and operating AI data centers requires large capital expenditures. Comparable neocloud providers have faced financing challenges, and RUM Group may need to raise additional capital to fund Quake’s planned expansion.

The reported Anthropic agreement remains unverified until confirmed by either company.