Key Takeaways
- Google backs $1.8 billion TeraWulf AI venture, gaining warrants for potential 8% stake.
- The deal consists of $3.7 billion in contracted income and includes over 200 MW of AI-driven infrastructure growth.
American Bitcoin miner TeraWulf introduced Thursday that it has entered into two 10-year high-performance computing (HPC) colocation agreements with AI cloud platform Fluidstack, backed by Google, which might see the tech large turn out to be a serious shareholder.
Beneath the agreements, TeraWulf will present greater than 200 megawatts (MW) of essential IT load at its Lake Mariner knowledge middle campus in Western New York, a facility purpose-built for liquid-cooled AI workloads.
The whole contract worth might attain $8.7 billion if two five-year extension choices are exercised, as famous by the corporate.
Google will backstop $1.8 billion of Fluidstack’s lease obligations to assist project-related debt financing and obtain warrants to amass roughly 41 million shares of TeraWulf frequent inventory, representing an 8% professional forma fairness stake.
“It is a defining second for TeraWulf,” stated TeraWulf CEO Paul Prager in an announcement. “We’re proud to unite world-class capital and compute companions to ship the subsequent technology of AI infrastructure, powered by low-cost, predominantly zero-carbon power.”
The primary section of roughly 40 MW is predicted to come back on-line within the first half of 2026, with full deployment of over 200 MW deliberate by year-end 2026. The venture’s whole price is estimated at $8-10 million per MW of essential IT load.
“Fluidstack is proud to be a trusted supplier of essential compute for the world’s main AI labs,” stated César Maklary, Co-Founder and President of Fluidstack. “Our partnership with TeraWulf displays our shared dedication to delivering speedy, scalable infrastructure for the AI frontier.”
TeraWulf (WULF) shares surged greater than 46% intraday following the brand new agreements, in keeping with Yahoo Finance knowledge.
