RUM Group Chris Pavlovski Talks Earnings, Business Model

**SPEAKER_1** (0:02)
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**Ed Ludlow** (0:14)
Rum Group coming off a record quarter with second quarter revenue jumping 61% from a year ago to more than $40 million, now forecasting as much as $93 million this quarter as it pushes deeper into AI infrastructure. Rum Group's CEO and founder, Chris Pavlovski, back with us.
June 17th, you closed the acquisition of Northern Data, and in this quarter gone, that shows up as a $10.1 million contribution. So it's early, but let's start there.
How had that gone? And what's the direction of travel? And maybe just explain the pivot that you made.

**Chris Pavlovski** (0:48)
Absolutely. Thanks for having me back on. So in Q1, we did $25.5 million. In Q2, which we just reported, we did $40.4 million, which is a record for the company. We closed Northern Data in mid-June. We rented the company to Rum Group. So now we have two divisions. We have the video platform, which is Rumble. And on the other side, we have Quake AI, which is the AI compute as a service business. And that showed up in the quarter. And we posted a record, a record in the history of the entire company since the inception of going public.
And we, for the very first time, we initiated formal guidance as a company, now that we see that we can predict and be better at telling the market and where we're going and telling the story. And we are forecasting between 87 and 93 million for the third quarter of 2026

**Ed Ludlow** (1:48)
Chris, did the investors accept, understand and believe the Quake AI story?

**Chris Pavlovski** (1:55)
I think that's something the market's missing right now. I think that we have to execute as a team and we have to show that we can take this business and capitalize on the opportunity that we have. We have over 250 megawatts of unmonetized power, 150 megawatts that's in Georgia.
That represents a 3 billion annual revenue opportunity for the business. So at this moment, I think the market wants to see some execution and I think we're starting to show that. We posted a record here in Q2 and we're anticipating on posting a record in Q3.

**Ed Ludlow** (2:36)
So that's interesting, right? Not yet monetized from a megawatt perspective. You could even just do it on a per GPU basis. You guys have more than 20,000 Nvidia GPUs across H100 and H200 generations. What does it take to monetize that capacity? Bring it online.

**Chris Pavlovski** (2:53)
Yeah, so our current estate that's monetized right now, we have about 22,000 GPUs, that's monetizing at about 6 to 7 million per megawatt. And as you've probably seen with a lot of different earnings out there in SpaceX, etc., there's a lot of different projections on where that can go for the estates. The 250 megawatts that we do have that's currently unmonetized, if you throw Rubens in there, if you throw Blackwells in there, depending on the customer that we put there and what chipset we put there, that can scale up pretty dramatically from 6 to 7 million per megawatt. You heard Elon talking about 30, he was guessing between 30 to 50 billion per gigawatt, so the scale can get pretty rapid there. That is exactly the opportunity we have in front of us. And my team is heads down 100% on monetizing that 250 as fast as possible. It's only been a month and a half. We've got the utilization up on the current estate up to roughly 85%.
And now we're heads down on trying to get that 250 monetized, get the right client there and capitalize on that 3 billion annual revenue opportunity that sits right in front of us.

**Ed Ludlow** (4:10)
Again, this was a pivot. So in the quarter gone, the video platform still contributed more than 30 million dollars in revenue. What's the future of that business?
You see an inflection point where AI is just a vast majority and video goes away, or it's more even set?

**Chris Pavlovski** (4:26)
I see there's a real opportunity that's coming in the future. And I think it's a little early at this moment, but robotics, I think the next major leg on AI, obviously AI Compute, the demand is very scarce, the demand is super high, there's very low supply, and that's going to be a very big business going forward for us. But I also think the video side provides a real opportunity when we get into this robotic era of AI, the video data is going to be very compelling in order for training robotics. So we sit in a very interesting place with over 57 million monthly active users on the video platform, and a community, a very strong community, that can contribute a lot of video data and monetize their video data for that robotic era AI. And I think that creates a moat around RUM Group that the typical Neo Clouds don't have. We have what the Neo Clouds have, and that's the power, the land, the GPUs, but we also have something they don't have, and that's the video data.