TeraWulf Partners With Google for $1.8 Billion AI Hosting Project

By: Eliza Bennet

TeraWulf, a significant player in the Bitcoin mining industry, is making waves with its strategic partnership with Google, securing pivotal backing for a $1.8 billion dollar artificial intelligence project. This collaboration has been set up through high-performance computing (HPC) agreements with Fluidstack, an AI infrastructure provider. Google's involvement in this venture is instrumental, as it supports Fluidstack's lease obligations and provides essential financial backing in the form of debt financing to help drive the initiative forward.

Additionally, as part of this strategic support, Google has received warrants that allow it to potentially acquire around 41 million shares of TeraWulf's common stock. Should Google choose to exercise these warrants, it would equate to an approximate 8% pro forma equity stake in TeraWulf. This strategic collaboration is a major boost for TeraWulf, enabling the company to advance two key 10-year HPC colocation agreements with Fluidstack. These contracts are set to deliver over 200 megawatts of critical IT load capacity from TeraWulf’s Lake Mariner data center.

The total value of these agreements is pegged at around $3.7 billion over the decade-long term, with the potential to rise to $8.7 billion should extension options be enacted. The first phase of the deployment is scheduled to become operational in early 2026, ramping up to full capacity by the end of that year. This development marks a significant expansion into the AI hosting domain for TeraWulf, reinforcing its position as a leading digital infrastructure operator.

In a parallel development, Google has updated its crypto wallet policies concerning custodial services in multiple jurisdictions, including the U.S. and the EU, indicating a tightening of regulatory requirements. While the new policies generated some confusion, Google emphasized that non-custodial wallets are not affected, aiming to clarify its stance in the rapidly evolving world of cryptocurrency and digital assets. This regulatory shift alongside their involvement in the TeraWulf project demonstrates Google's broader engagement with the digital currency ecosystem.