Google Unveils Tensor G5: A 34% Faster CPU and TPU Upgrades

Google's Tensor G5 chip is its biggest upgrade to custom silicon, manufactured by TSMC on a 3nm process node. It boasts a 34% faster CPU, improved performance cores, and a high-speed memory interface. The TPU is up to 60% more powerful, while the Gemini Nano model from DeepMind runs 2.6x faster and 2x more efficiently. Tensor G5 powers over 20 on-device AI features, including Magic Cue, Call Notes, and Scam Detection, and features an upgraded custom Image Signal Processor for improved video performance.

Google has significantly bolstered its investment in TeraWulf, a Bitcoin mining and high-performance computing (HPC) firm, by increasing its stake to $3.2 billion, elevating its ownership to around 14% [1]. This substantial increase has led to a 12% surge in the WULF stock price during pre-market hours on August 18, 2025 [1].

The new deal, announced on August 18, 2025, involves Google acquiring an additional 32.5 million shares of TeraWulf, raising its stake to approximately 14% from its previous 8% ownership [1]. This investment is part of a broader strategic alignment with TeraWulf, which includes a 10-year colocation agreement with the AI cloud platform Fluidstack at TeraWulf's Lake Mariner data center campus in Western New York [2]. The expansion of this data center, which includes the addition of a new building (CB-5) to provide an incremental 160 MW of IT load, is expected to commence operations in the second half of 2026 [1].

TeraWulf's CEO, Paul Prager, highlighted the strategic importance of this expansion and partnership, stating, "By adding CB-5, we are not only increasing our contracted capacity with Fluidstack, but also further deepening our strategic alignment with Google as a critical financial partner in delivering the next generation of AI infrastructure" [1]. This strategic pivot towards AI and HPC reflects a broader industry trend, as seen in the increasing demand for AI infrastructure and the need for companies to diversify revenue streams [2].

The company has also announced a private offering of $400 million in convertible notes, which will be used to fund the data center expansion, the cost of capped call transactions, and for general corporate purposes [1]. This additional funding will support TeraWulf's growth and expansion plans, positioning it as a key player in the intersection of AI and blockchain infrastructure.

Google's increased involvement in TeraWulf signals a transformative moment for the blockchain mining sector. The tech giant's investment validates the potential of AI-powered Bitcoin mining as a strategic infrastructure play, as well as the importance of sustainable energy practices in the sector [3]. This development is likely to attract more institutional capital to mining companies and related SPACs, as seen in the recent surge in investor confidence in TeraWulf's stock price [2].

For blockchain mining SPACs, this development highlights the importance of targeting companies with diversified revenue models, strong institutional partnerships, and environmentally conscious operations. While it enhances the sector's legitimacy and investor appeal, it also introduces challenges like higher valuations, regulatory scrutiny, and competition for quality targets [2].

References:
[1] https://finance.yahoo.com/news/crypto-stock-jumps-google-increases-161512048.html
[2] https://www.tekedia.com/google-has-increased-its-stake-from-8-14-on-terawulf/
[3] https://www.ainvest.com/news/google-8-stake-terawulf-emergence-ai-powered-bitcoin-mining-strategic-convergence-reshaping-institutional-investment-2508/