RUM Group (RUM) Canaccord Genuity's 46th Annual Growth Conference summary

Business overview and strategic direction

• RUM Group consists of two autonomous businesses: a video platform with 50M+ monthly users and Quake AI, an AI compute-as-a-service brand formed after acquiring Northern Data.

• The group built its own infrastructure, including CDN and data centers, to support its platforms and now leverages these assets for cloud and AI services.

• Tether, a major stablecoin company, owns nearly 50% of the group, providing strategic alignment and access to capital and technology.

AI compute infrastructure and monetization

• Quake AI operates 22,000 Hopper-generation GPUs, primarily in Europe, serving 50+ customers with diverse workloads from inference to training.

• The group controls 250 MW of unmonetized, grid-connected power for 2027, representing a $3B+ annual revenue run rate opportunity at current rates.

• The Atlanta, Georgia facility is the flagship site with 180 MW, fully permitted and ready for build-out, with additional capacity in Pittsburgh and Europe.

• Utilization of GPU assets improved from below 20% to over 83% in the past year, driven by new management and focus on execution.

• The first major deal, a $270M multi-year contract with Together AI, validated the group's ability to deliver at scale.

Financial and operational outlook

• Monetization of the 250 MW estate is expected to drive significant revenue growth, with current AI compute rates at $6M–$7M per MW per year and next-gen GPUs (Vera Rubin) expected to command a premium.

• CapEx for data centers is estimated at $8M–$12M per MW, with next-gen GPU racks costing $7M–$8M each; Atlanta could house 40,000–50,000 GPUs.

• The group is confident in securing GPU supply due to strong partnerships, especially with NVIDIA, and sees Tether's backing as a strategic advantage.

• Key operational risks include access to skilled labor and long-lead equipment, but critical infrastructure at the Atlanta site is already in place.