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)