RUM Group Inc. Class A Common Stock Canaccord Genuity's 46th Annual Growth Conference

Good to meet everybody. Mike Massey. I am the CFO of RUM Group, which is a combination of what used to be known as Rumble, as well as our Quake AI brand that does AI compute as a service. Speaking of the two businesses, we have Rumble Video, which we were known for previously. Folks know it's a video platform, 50 million-plus monthly active users. The history of it is a free speech platform. As a part of that, it had to build all of its own rails. It couldn't use AWS, couldn't use GCP to host its servers, et cetera. It built its own CDN, it built its own data centers, et cetera. As a part of that, we also offered a cloud service.

Just last year, we acquired a company called Northern Data, which was a former Bitcoin miner that then became an HPC/AI compute as a service company. We just closed that transaction in mid-June. As a part of that, we took the Rumble Cloud, the data centers, the CDN, the low latency, et cetera. We combined that with the GPU as a service from Northern Data, and we formed the brand of Quake AI. In addition, we still have our existing Rumble video platform, and RUM Group is the holding company. There are two separate businesses that operate autonomously underneath them. There are strategic synergies between them. For example, we've started to explore with the customers of both Rumble Cloud and Northern Data. There is a lot of interest in our video data for purposes of AI training.

We've gotten multiple outreach on that from robotics companies that want to be able to use and leverage some of that video data, especially that is spatial, temporal, et cetera. As we look at moving forward, we're really focused on, and the majority of the financial opportunity is really going to come from Quake AI. I'll talk about that in a bit and tell you about what size opportunity and why we're so excited about it. One footnote to the story, very important strategic partner of ours, owns almost 50% of the combined company, is Tether. Tether is the world's largest stablecoin company, extremely profitable, also makes strategic investments. We are extremely well-aligned with them. We are one of their largest investments, and we think this unlocks for us both a network of and access to technology that's a meaningful differentiator for us. Okay. Quake, let me give you the speaker notes version of this. 22,000 existing Hopper generation GPUs running inside of primarily European estate.

It has a diverse set of workloads, so it is not just one hyperscaler. We have 50-plus end users and customers going from inference to training to pre-training to QLoRA, if folks know some of those workloads. Most importantly to the story, if there is one thing I want you to remember out of this, we have 250 megawatts of unmonetized grid-connected power in 2027. I will talk to you about why we have that, because the first question that I often get is, "How do you have that?" Because it has been sold out, right? I will tell you about the journey of why we have it and why we are so excited about the opportunity.

The net of it is the monetization of that 250 megawatts of 2027 power represents a $3 billion-plus revenue run rate opportunity at today's rates, which are trending upwards, I would say. What is the story? What is the journey for Quake AI? Northern Data was one of the original HPC AI companies. It saw the strategy, it saw where the future was going. It had the strategy, but it did not have the execution. Customers were disappointed. Utilization was not where it needed to be. In large part, we brought in new management and leadership last year that was very focused deeply on the execution of the existing 22,000 GPUs. Utilization went from sub 20% in the middle of last year to now 83% plus consistently for the first half of this year.

We also have those same customers that we needed to prove our execution to now wanting more from us. They do not just want the current capacity, they want even more capacity from us. We had to rebuild the foundation of execution credibility and customer credibility over the last year to get us to the point where we could actually talk about monetizing the estate that we had. Our first deal and the largest deal in the company's history was with a company called Together AI. It was a multiyear contract for latest generation GPU on B300s from NVIDIA. That was $270 million, and it is really our first proof point on latest generation technology with an existing customer of ours that show that we can do technology leadership and AI compute as a service at scale.

Where we sit today and where our management focus is now is on we have earned the right and we have earned the credibility and the execution to be able to go monetize the 250 megawatts of capacity. I am going to skip forward a bit and get to the gist, the most important thing for you to take away, and this is the estate. This is where we have power. The signature of that 250 megawatts is our facility in Atlanta, Georgia. It is 180 megawatts. The most important things right now in the AI compute as a service space are in place for Atlanta, Georgia. We have our use permits. We have a Georgia Power CES. The substation is already built. The transformers are already in place. This is a site that is ready to be built. We are engaged with multiple hyperscalers.

We're trying to choose the right partner for us because this is really the first of many we see in terms of large-scale deals, and we're really excited about where we are in terms of demand versus supply on that. Again, 2027 power, 2027 estate. In addition to Atlanta, we have a smaller facility in Pittsburgh, which we think will be helpful for AI natives. In addition, we have an additional 70 megawatts in Europe, specifically 50 megawatts in Sweden and another 20 megawatts in Norway. As a management and leadership team, we are focused on our monetization and our execution of this 250 megawatts of 2027. With current rates today, and I'll show a little bit of the math around that because I'm sure there's some folks who know how this works from a revenue per megawatt perspective.

We will be at a $3 billion-plus revenue run rate opportunity when we execute on this estate. We think this is not meaningfully understood by the market today, we think this is not meaningfully understood by investors today, and we're really excited because we just need to be able to execute this to grow to a new scale and new magnitude. This is saying what I just said, which is effectively, if you look at the other AI compute as a service companies that are out there, the Nebius, CoreWeave, IREN, others who are private, et cetera, who can deliver AI compute as a service. They trade for the most part on forward revenue and things like backlog, et cetera. It's very clear that the market still sees us as a video platform, and they really still see the existing business that we were.

I think that there's starting to be a recognition of just what opportunity we have in front of us if we have a $3 billion-plus annual run rate revenue opportunity. One thing I will mention, sorry to go into the backup, but this is important. There are a lot of amazing business opportunities within the world of AI compute, and there's an industry that is far outstripping demand versus supply. We, in particular, are an AI compute as a service company, AKA GPU as a service company. We do not just do what we would call power and shell. That is a perfectly valid and amazing business model, and we might partner with some of those folks in the future to deliver our services in the end.

You can see here the monetization of power and shell is typically anywhere between $1.5 million and $2 million per megawatt per year, contracted over a long period of time. As we look at the run rates for AI compute as a service, our estate today is monetized at roughly $6 million to $7 million per year per megawatt. Latest generation Blackwell, we've seen trade at more like $11 million per year per megawatt. Future generation Vera Rubin, which is what the 250 megawatts will likely be deployed with, we expect to operate at a premium to that. I think you all have probably seen and heard that the industry is certainly firming in terms of price. I've heard numbers thrown around by Elon and others that are significantly higher than this.

But nonetheless, we are seeing a really exciting pricing environment, both for our existing estate as well as for our opportunities of the future with 250 megawatts. So in summary, we think we are a meaningful opportunity. We think we have a clear execution ahead of us. We think it is a simple story. It is 250 megawatts. There is a marquee site in Atlanta. There is a growth opportunity where clearly demand outstrips supply. And we think that the market is hopefully going to be catching up with and understanding just how well we are going to be able to execute this and ultimately monetize to a level of revenue growth that is meaningful. So that is our story. And with that, I will invite up Kingsley if you want to have a quick chat.