TeraWulf's AI Hosting Deal with Google Generates $3.7 Billion in Revenue

TeraWulf shares rose 43% after Alphabet's Google invested in the Bitcoin mining company as part of a 10-year AI hosting deal with Fluidstack. The deal includes $3.7 billion in contracted revenue and potential extensions that could bring total revenue to $8.7 billion.

In a significant strategic shift, TeraWulf Inc., a Bitcoin miner, has signed a landmark $3.7 billion, 10-year AI hosting deal with Fluidstack, marking a pivotal move from cryptocurrency mining to high-performance computing and AI infrastructure. The agreement, announced in mid-July 2025, involves deploying over 200 megawatts (MW) of AI capacity at TeraWulf’s Lake Mariner campus in Western New York, with the potential to expand to $8.7 billion if both five-year extension options are exercised [1].

Google has played a crucial role in the deal by guaranteeing $1.8 billion of Fluidstack’s obligations in exchange for an 8% stake in TeraWulf via warrants. This arrangement not only provides critical financial support but also strengthens the credibility and scalability of the project [2]. The Lake Mariner site is specifically designed for liquid-cooled AI workloads, featuring dual 345 kV transmission lines, closed-loop water cooling, and ultra-low-latency fiber connectivity. TeraWulf expects to bring 40 MW online by the first half of 2026, with full deployment of over 200 MW expected by year-end 2026 [1].

TeraWulf’s shift from Bitcoin mining to AI infrastructure has already generated strong investor interest. The company’s stock surged over 43% in early trading following the announcement [3]. The deal reflects a broader industry trend where tech firms are partnering with energy-rich infrastructure providers to meet the growing demand for AI processing power. By leveraging its existing energy infrastructure and transitioning into AI hosting, TeraWulf is positioning itself as a competitive player in the high-performance computing space [4].

References:
[1] https://www.ainvest.com/news/terawulf-3-7-billion-ai-hosting-deal-google-8-stake-strategic-pivot-ai-infrastructure-supremacy-2508/
[2] https://blockonomi.com/bitcoin-miner-terawulf-locks-3-7b-ai-deal-google-takes-8-slice/
[3] https://seekingalpha.com/news/4485358-terawulf-surges-35-as-google-takes-8-stake-in-crypto-miner
[4] https://www.coinglass.com/ru/news/533866