QumulusAI Begins Billing Under $71.9 Million Blackwell Agreement
Key Facts
QumulusAI announced on October 15, 2026, that all units under its $71.9 million Blackwell agreement had entered production and billing, with the delivered units beginning to generate revenue for the company. The agreement runs for 3 years, according to the company's statement on completing deployment of the graphics processing units covered by the contract. The company said the transition to operation and billing came within what it described as "10 weeks" of signing the agreement. Delivery of the B200 portion to the customer had previously been completed on September 8, 2026, according to its announcement on that phase. The completed deployment covers the units under this agreement, while other contracted capacity remained scheduled for later delivery.
Alongside the operational announcement, QumulusAI said the cumulative value of signed customer contracts had reached $523.4 million. The total represents an increase of 85% from the value the company previously disclosed with its second-quarter results. The cumulative value reported at that time was $282.5 million, before adding the contracts the company disclosed in September. The company estimates that signed contracts represent about $209 million in annual recurring revenue over their initial contractual terms. This estimate excludes contract extension options, as the company calculates annual revenue based on commitments over their initial terms.
The company announced in September that it had signed 2 new agreements with AI inference platforms, with a combined initial value of $240.9 million. Each agreement has an initial term of 3 years, according to the company's statement on the new capacity contracts. It said the agreements were signed on a "take-or-pay" basis, requiring the customer to pay for the contracted capacity under this type of agreement. The new contracts cover more than 2,000 Nvidia graphics processing units from the Blackwell family and the B300 model. The company set separate dates for delivering capacity to customers, ranging from December 2026 to early 2027.
On the operational infrastructure side, QumulusAI's total contracted capacity reached 11.75 megawatts, according to the company's update. The active revenue-generating portion of that capacity stood at 7 megawatts when it announced that the Blackwell agreement had entered production. The contracted capacity is spread across 6 colocation sites, according to the same statement. The customer under the completed Blackwell agreement expanded its commitments to the company through the Atlanta capacity contract. Its total contractual commitments following that expansion reached $283.8 million, excluding extension options, according to figures announced by QumulusAI.
The expansion in contracts and operational capacity followed the company's reported second-quarter revenue of $6.7 million, according to its published financial results. Revenue rose 118% year on year from the corresponding period a year earlier. Revenue in that comparison period was $3.1 million, according to the company's earnings statement to investors. Meanwhile, the second-quarter operating loss widened to $7.7 million from $2.2 million in the comparison period. The company attributed the wider loss to higher depreciation and amortization expenses associated with expanding its high-performance computing infrastructure.
The next phase includes an additional 1 megawatt of capacity that is already energized, according to Investing's account of the announcement. Final delivery of this capacity is scheduled for the end of October, adding to the active portion of the company's operational infrastructure. Under the announced schedule, active capacity will rise to 8 megawatts following this delivery. QumulusAI expects to deliver capacity under the smaller agreement announced in September, valued at $29.1 million, to the customer in December 2026. For the Atlanta agreement, valued at $211.9 million over its initial term, the company is targeting delivery of capacity to the customer in early 2027.