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Shares of Rum Group (RUM), the company formerly known as Rumble, rallied almost 12% on Sept. 14 after The Information reported that it bagged a $13.7 billion compute deal with Anthropic. This is a major win for the company following its rebirth as Rum Group; the company now has an AI cloud and infrastructure division called Quake AI following its acquisition of Northern Data in June 2026.
The demand for compute is real and only expected to grow, irrespective of the AI slowdown fears currently engulfing the market and driving the share prices of AI companies lower. Let's take a closer look.
About Rum Group
Founded in 2013 as Rumble, an alternative video platform, the company went through a massive evolution in 2026. Following the acquisition of German AI infrastructure company Northern Data, Rum Group entered into the fiercely competitive but rapidly growing AI space. Now, the company now has two businesses — the consumer-facing one, which includes its traditional Rumble operations, and Quake AI, which houses Rumble Cloud.
Valued at a market capitalization of roughly $4 billion, RUM stock is up 27% on a year-to-date (YTD) basis.
So, should investors get ready to rumble with Rum Group in its new era? Or is there a tumble lurking ahead?
Rum Group Has Firepower, But Established Players Will Not Cede Space
On June 17, 2026, Rumble completed its acquisition of Northern Data, gaining majority control by purchasing an 85.2% interest in the company. Northern Data came bearing gifts — some very valuable ones at that — including 22,000 Nvidia (NVDA) H100 and H200 GPUs. In the same month, the firm also announced a multiyear agreement with cloud platform Together AI to deploy Nvidia HGX B300 systems.
Chip prowess aside, Northern Data also brought something to the table that is becoming one of the most crucial commodities of the AI buildout: power. The Northern Data acquisition reportedly pushed Rum Group to approximately 250 megawatts of “current energized and planned power, almost all of which is expected to come online by 2027 across ten data centers, four of which are owned.” Rum Group described more than 200 MW of this total as “currently unmonetized," and believes that the 250 MW of targeted 2027 capacity could represent more than $3 billion of annual run-rate revenue opportunity.
Having said that, Rum Group still has a long way to go to make its presence felt. Bagging a deal with Anthropic is a start, but it has to secure more customers and continue to have a steady source of financing to procure the latest GPUs, be a reliable source of power, and do all of this in a manner that is sustainable and profitable. Not to mention the presence of established behemoths like Amazon's (AMZN) AWS, Alphabet's (GOOGL) Google Cloud, and Microsoft (MSFT) Azure as well as the neocloud duo of CoreWeave (CRWV) and Nebius (NBIS) standing as formidable, entrenched players in the ecosystem.
It will likely be difficult for Rum Group to gain a foothold in the industry. However, the company can try to create an effective ecosystem, leveraging its millions of Rumble video platform users to drive business for its AI offerings. Notably, Rum Group has spent years building its own network of storage, networking, and video-delivery infrastructure, which can be combined with the newly acquired GPUs and power clusters.
A clear strategic vision on this part is awaited, and it will be interesting to see how the company seeks to deploy the resources that are now at its disposal.
Rum Group Reports Q2 Results
The latest numbers make the climb look even steeper for Rum Group. For the second quarter of 2026, the company reported record revenue while losses widened. With the momentum of the AI buildout, things are also expected to only get worse before they get better.
Revenue grew by 61% year-over-year (YOY) to $40.4 million in Q2. Within that, the Rumble video business generated $30.3 million of revenue, up 21% YOY, while the Northern Data business encouragingly contributed $10.1 million in a short span of time. Quake AI operated at a high utilization rate of 85% during the quarter.
However, losses widened to $0.28 per share in Q2 from $0.12 per share in the year-ago period. Loss per share also came in more than three times higher than the consensus estimate of a $0.09 loss per share.
Net cash used in operating activities for the six months ended June 30, 2026 came in at $66.1 million. This was more than double the previous year's figure of $$30.4 million. Overall, Rum Group concluded the quarter with a cash balance of $203.3 million, much higher than its short-term debt levels of about $40 million.
Rum Group's unprofitable nature makes valuation comparisons across key metrics difficult, although its forward price-to-sales (P/S) ratio of 39.4 times comes in well above the sector median.
What Do Analysts Think of RUM Stock?
Rum Group has limited coverage on Wall Street. Based on three analysts with coverage, RUM stock has a consensus “Moderate Buy” rating overall. One of those analysts has a “Strong Buy” rating while the remaining two have “Hold” ratings. Meanwhile, the mean target price of $22 indicates potential upside of 165% from current levels.
