Trump-linked RUM Group signs $13.7 billion AI deal with US-based cloud client

Aug 24 (Reuters) - RUM ‌Group, which hosts ​U.S. ​President Donald Trump's Truth Social platform, said on Monday it has signed a contract ‌with an unnamed U.S.-based cloud customer worth about $13.7 ⁠billion to supply AI chips.

Shares of RUM Group rose more than ‌8% in premarket trading.

Here ‌are some details:

• Rumble started operating as RUM Group in June after closing its acquisition of German ​AI cloud company Northern Data, creating a new AI-infrastructure business as it seeks to capitalize on ⁠booming AI compute demand.

• Under the deal, the customer will get access to ​GPUs and related services from RUM Group's Maysville, Georgia site, which is currently under development.

• ​RUM Group said it is ‌giving the unnamed customer the option to buy around 51 million shares of its ⁠stock for just one cent each, according to a regulatory filing.

• The option will become available to the customer ⁠gradually over six years, as the client fulfills the purchase agreements.

• ​The customer will buy $13.7 billion in GPU services over six years in three parts, with the last instalment contingent on a ‌delivery date approved by the client.

• RUM Group did not immediately respond to a ‌Reuters request for comment about the customer.

• The company ⁠said it currently lacks ‌the necessary funds ​and plans to raise capital through debt or equity to fulfill this contract.

(Reporting by Pooja ‌Desai)

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