Rumble affiliate lands $13.7B GPU services deal with US cloud customer

RUM Group Inc., the company formerly known as Rumble Inc., just locked in a GPU services agreement worth approximately $13.7 billion over six years with a US-based cloud customer. The deal, announced on August 23, also comes with a warrant term sheet granting the unnamed customer the right to purchase up to 50,808,408 Class A shares at an exercise price of $0.01 per share. The warrants vest in connection with actual service purchases and potential expansion agreements, which means the customer gets increasingly cheaper equity the more GPU capacity it consumes. How the deal is structured The agreement is split into three equal tranches, with each tranche representing roughly $4.6 billion in GPU services. Delivery of the final tranche hinges on the customer approving a proposed delivery date, giving the buyer a degree of optionality on the back end of the contract. On the warrant side, 50% of the shares vest across three tranches of 16.67% each, tied directly to the service purchases. The remaining 50% vest through five separate 10% tranches linked to expansion agreements. The Northern Data pipeline This contract doesn’t exist in a vacuum. RUM Group acquired Northern Data AG in June ...