Google Invests in TeraWulf, Securing $3.7 Billion Deal and 8% Stake in Company

TeraWulf, a bitcoin mining and high-performance computing infrastructure company, has signed a $3.7 billion, 10-year AI hosting agreement with Fluidstack, backed by Google. The deal includes two, five-year extension options that could bring the total to $8.7 billion. Google will receive an 8% stake in TeraWulf in return for backing $1.8 billion of Fluidstack's lease obligations. TeraWulf's stock soared 45% following the announcement, its highest level since January. Analysts call the deal transformative, boosting TeraWulf's visibility on future growth and profitability.

TeraWulf Inc. (Nasdaq: WULF), a leading provider of hyperscale AI infrastructure, has signed a significant 10-year AI hosting agreement with Fluidstack, a premier AI cloud platform. The deal, valued at approximately $3.7 billion over the initial 10-year period, includes two five-year extension options that could bring the total contract revenue to approximately $8.7 billion [1]. This agreement further solidifies TeraWulf's position as a key player in the AI infrastructure market.

The agreement involves TeraWulf delivering more than 200 MW of critical IT load at its Lake Mariner data center campus in Western New York, which is purpose-built for liquid-cooled AI workloads. The facility is designed to meet the scale, density, and resiliency required for next-generation compute, aligning with Fluidstack's needs for high-performance computing (HPC) [1].

Google has backed $1.8 billion of Fluidstack's lease obligations to support project-related debt financing and will receive a warrant to acquire approximately 41 million shares of TeraWulf common stock, equating to an approximately 8% pro forma equity ownership stake in the company [1]. This strategic partnership underscores the alignment between TeraWulf and one of the world's most influential global AI partners.

TeraWulf's stock surged 45% following the announcement, reaching its highest level since January 2025. Analysts have praised the deal, calling it transformative and boosting TeraWulf's visibility on future growth and profitability [1].

The agreement also includes a 30-day exclusivity for CB-5 at Lake Mariner, adding potential 160 MW of critical IT load to the project. This exclusivity period will allow Fluidstack to design and deploy a customized, scalable solution tailored to their specific requirements [1].

TeraWulf's Chief Executive Officer, Paul Prager, commented, "This is a defining moment for TeraWulf. We are proud to unite world-class capital and compute partners to deliver the next generation of AI infrastructure, powered by low-cost, predominantly zero-carbon energy. This transaction underscores Lake Mariner’s status as a premier hyperscale-ready campus and further accelerates our strategic expansion into high-performance compute" [1].

Fluidstack's Co-Founder and President, César Maklary, added, "Fluidstack is proud to be a trusted provider of critical compute for the world’s leading AI labs. Our partnership with TeraWulf reflects our shared commitment to delivering rapid, scalable infrastructure for the AI frontier" [1].

References:
[1] https://investors.terawulf.com/news-events/press-releases/detail/112/terawulf-signs-200-mw-10-year-ai-hosting-agreements-with