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Rumble Eyes $1.2 Billion Deal for Germany’s Northern Data

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Video-sharing platform Rumble (RUM.O), which hosts former U.S. President Donald Trump’s Truth Social, is exploring a $1.17 billion acquisition of German tech firm Northern Data (NB2.DE) to expand its global AI cloud infrastructure.

The potential deal would give Rumble control of Northern Data’s Taiga cloud business, which owns a vast inventory of high-performance Nvidia GPUs (20,480 H100s and over 2,000 H200s), as well as its Ardent data center operations. Rumble plans to integrate these into its existing services.

As part of the transaction, Tether, the world’s largest stablecoin issuer, would become a key customer with a multi-year GPU purchase commitment. Tether, which already owns 48% of Rumble and 54% of Northern Data, invested $775 million in Rumble in December 2023. Under the proposed structure, Tether would emerge as the largest single holder of Rumble’s Class A common stock, while CEO Chris Pavlovski would retain majority voting control.

Rumble is considering offering 2.319 shares for each Northern Data share, valuing the German company at around $18.3 per share—a 32% discount to its recent Frankfurt closing price. If accepted, Northern Data shareholders would hold about 33.3% of Rumble.

Northern Data’s board confirmed it is reviewing the proposal and remains open to discussions, though both companies stressed that talks may not result in a formal offer. Meanwhile, Northern Data would sell its crypto mining unit, Peak Mining, and use proceeds to repay part of a €575 million loan from Tether.

Rumble, which went public in 2021 through a SPAC deal, counts Peter Thiel and Narya Capital (co-founded by U.S. Vice President JD Vance) among its early investors.

If completed, the acquisition would significantly boost Rumble’s AI cloud capabilities and deepen ties between Rumble, Northern Data, and Tether in the fast-growing GPU-driven infrastructure market.

Palantir Shares Surge Nearly 9% After Raising Revenue Forecast on Strong AI Demand

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Palantir Technologies (PLTR.O) shares jumped nearly 9% in early trading Tuesday after the company raised its annual revenue forecast for the second time this year. The data analytics and defense software firm is benefiting from strong demand for its AI-driven services across governments and enterprises.

Palantir’s stock has doubled this year and climbed more than 600% over the past three years, making it the top performer on the S&P 500 through the last close. Jacob Falkencrone, Saxo’s global head of investment strategy, said Palantir is evolving from a government vendor into an essential partner for enterprises in the AI revolution.

Wedbush analysts project Palantir could reach a $1 trillion market capitalization within the next few years, up from $379.14 billion as of the latest close. Co-founded by Peter Thiel in 2003 and publicly listed in 2020, Palantir has secured multiple U.S. government contracts this year, including a $30 million deal with Immigration and Customs Enforcement.

The Trump administration’s renewed focus on national security has fueled growth, with the U.S. Army indicating it may spend up to $10 billion on Palantir’s services over the next decade. Sales to the U.S. government surged 53% in Q2 to $426 million, accounting for over 42% of Palantir’s roughly $1 billion total revenue for the quarter.

Valuation Concerns:
Despite its rapid growth, some analysts warn Palantir’s valuation is extremely high, trading at more than 200 times 12-month forward earnings—far above AI peer Nvidia’s multiple of 34.81. Morningstar analysts noted the company’s robust competitive advantages but cautioned that the valuation is increasingly difficult to justify.

Palantir also expects higher expenses in Q3 due to seasonal hiring amid competition for AI talent from major tech firms. Nevertheless, at least eleven brokerages raised their price targets on the stock following the earnings release.

Palmer Luckey, Backed by Palantir’s Joe Lonsdale, Launching Crypto-Focused Bank Erebor

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Tech billionaire Joe Lonsdale, co-founder of Palantir, announced his investment in Erebor, a new U.S. digital-only bank founded by Palmer Luckey, co-founder of defense tech company Anduril. Erebor aims to fill the gap left by Silicon Valley Bank’s collapse in March 2023, which severely impacted startups and venture capital firms dependent on SVB’s services.

Erebor has applied for a national bank charter and plans to serve tech companies across sectors like artificial intelligence, cryptocurrency, defense, and manufacturing, as well as individuals connected to these industries. The bank’s name, drawn from Tolkien’s The Lord of the Rings, references the Lonely Mountain fortress known for reclaiming treasure.

Headquartered in Columbus, Ohio, with a secondary office in New York, Erebor intends to operate with a digital-first approach. Leadership includes Owen Rapaport and Jacob Hirshman, a former advisor to stablecoin company Circle.

The bank plans to hold stablecoins—a crypto asset class pegged to fiat currencies—to facilitate faster cross-border payments and digital financial services. Erebor aims to become “the most regulated entity conducting and facilitating stablecoin transactions,” signaling its focus on compliance in the evolving crypto banking space.

Besides Lonsdale, Erebor’s backers reportedly include Peter Thiel’s Founders Fund. Neither Luckey nor Lonsdale are expected to be involved in daily operations.