Tech Giant Google Grabs 8% Share in Bitcoin Miner TeraWulf Through $3.7 Billion AI Hosting Agreement
Google Investment Bolsters TeraWulf's AI-Focused Data Centre Expansion
In a strategic move, Google has acquired an 8% equity stake in TeraWulf Inc., a US-based company originally focused on industrial-scale Bitcoin mining. This investment forms part of a multi-billion-dollar partnership aimed at expanding high-performance computing (HPC) infrastructure tailored to artificial intelligence (AI) workloads.
The deal is worth $3.7 billion in guaranteed revenue over 10 years, with potential extensions raising that to $8.7 billion or beyond. Google has committed $1.8 billion towards supporting project-related debt financing and guaranteeing part of Fluidstack’s lease obligations.
TeraWulf, under this new direction, aims to be supplying 40 MW of IT load in the first half of 2026, with the rest coming online in the latter part of 2027. The company will supply over 200 MW of critical IT load to AI cloud platform Fluidstack for 10 years, with the Lake Mariner data center in Western New York serving as the deployment site.
This arrangement strengthens TeraWulf's financial position and credibility, aligning it with one of the most influential global AI infrastructure partners. The facility's design for liquid cooling and high-density AI workloads underscores a forward-looking approach to energy efficiency and sustainability in a sector known for high power consumption.
The Lake Mariner data center is hyperscale-ready for the world's most demanding AI use cases, boasting dual 345 kV transmission lines, closed-loop water cooling, and ultra-low-latency fiber connectivity, all engineered for HPC scalability.
Following the announcement, TeraWulf shares surged over 35% in early Thursday trading, later extending gains to nearly 59%. Google's Class A and C shares also edged higher after the news, building on a modest gain from the previous session.
Equity research firm Clear Street described the dual agreements between Google and TeraWulf as "transformative". The firm maintains its Buy rating on TeraWulf’s stock, with a price target of $9. Google also receives warrants to purchase approximately 41 million shares of TeraWulf common stock, translating to an 8% pro forma ownership stake.
Market observers see the deal as further validation of crypto-native infrastructure companies branching into the AI sector. TeraWulf, with this strategic partnership, is increasingly positioning itself as a dual-purpose infrastructure provider, catering to both blockchain operations and AI-driven workloads.
In summary, Google's investment in TeraWulf symbolizes a major commitment to a company bridging crypto mining expertise and hyperscale AI infrastructure. This partnership underpins a substantial expansion of sustainable, high-density compute capacity for AI, while securing Google a foothold in an increasingly critical segment of the digital infrastructure market.
- Google's investment in TeraWulf, a Bitcoin mining company, is part of a strategic move to expand their high-performance computing infrastructure towards artificial intelligence workloads.
- The deal has potential extensions that could increase the value of guaranteed revenue for TeraWulf from $8.7 billion to beyond that amount.
- TeraWulf's investments in blockchain technology, specifically Bitcoin mining, are now also extending into the AI sector, making them a dual-purpose infrastructure provider.
- The continued volatility in the crypto market, with assets like Bitcoin, could potentially impact the success of TeraWulf's blockchain operations, but their focus on AI-driven workloads provides a more stable source of revenue.
