TeraWulf Lands Massive $3.7 Billion AI Deal with Google Backing - Brave New Coin

The company announced a groundbreaking deal worth $3.7 billion on August 14, 2025. Google stepped in as a financial partner, taking an 8% stake in the company.

The deal sent TeraWulf’s stock price soaring. Shares jumped 35% in early trading, marking one of the biggest single-day gains in the company’s history. Investors clearly see this as a game-changing move for TeraWulf.

The Deal Details

TeraWulf signed two 10-year agreements with Fluidstack, an AI cloud platform. The company will provide over 200 megawatts of computing power at its Lake Mariner data center in western New York. This facility was built specifically for liquid-cooled AI workloads.

The $3.7 billion represents the initial 10-year contract value. However, the deal includes two five-year extension options. If exercised, the total contract value could reach $8.7 billion.

Google’s role goes beyond just being a customer. The tech giant will backstop $1.8 billion of Fluidstack’s lease payments. This guarantee helps secure project financing and reduces risk. In return, Google receives warrants for about 41 million TeraWulf shares, giving it roughly 8% ownership.

Why This Matters for AI Infrastructure

The artificial intelligence boom needs massive amounts of computing power. Companies training large language models require thousands of high-end processors working together. Traditional data centers often can’t handle these demanding workloads.

Source: @TeraWulfInc

TeraWulf’s Lake Mariner facility addresses these needs. The campus features dual 345-kilovolt transmission lines, closed-loop water cooling, and ultra-low-latency fiber connections. These specs make it ideal for the most demanding AI applications.

The project expects to generate 85% profit margins, translating to about $315 million in annual revenue. Total construction costs range from $8 million to $10 million per megawatt of capacity.

From Bitcoin Mining to AI Hosting

This deal represents a major shift for TeraWulf. The company started as a Bitcoin mining operation, using cheap electricity to mine cryptocurrency. However, Bitcoin miners have struggled with rising costs and increased competition.

Smart mining companies began diversifying into AI hosting. These operations use similar infrastructure but generate more stable revenue through long-term contracts. TeraWulf joins other miners like Core Scientific and IREN in making this transition.

The timing works well for TeraWulf. The company already owns power contracts and data center infrastructure. Converting these assets for AI use requires less capital than building from scratch.

Fluidstack’s Growing Empire

Fluidstack serves as the middleman in this deal. The London-based company manages AI computing resources for major clients. Their customer list includes Character.AI, Poolside, and Black Forest Labs.

Founded in 2017 at Oxford University, Fluidstack now manages over 100,000 graphics processing units worldwide. The company focuses on providing instant access to large-scale computing clusters for AI training and inference.

This TeraWulf partnership fits Fluidstack’s expansion strategy. The company recently announced plans for a massive supercomputer in France and other major projects across Europe.

Market Impact and Timeline

The deal validates the growing convergence between energy-intensive operations and AI companies. Crypto miners possess valuable assets: cheap power contracts and data center infrastructure in prime locations.

Construction begins immediately with an aggressive timeline. The first 40 megawatts should come online in the first half of 2026. Full capacity deployment of 200+ megawatts is scheduled for year-end 2026.

TeraWulf also secured a 30-day exclusivity option for an additional 160 megawatts at the same site. This could lead to even more expansion if demand continues growing.

The partnership creates a template for similar deals across the industry. Other Bitcoin miners will likely pursue comparable arrangements as AI demand explodes.

What’s Next for TeraWulf

TeraWulf CEO Paul Prager called this “a defining moment” for the company. The deal provides revenue visibility for the next decade, a luxury few companies enjoy in the volatile crypto space.

Google’s backing adds credibility beyond just financial support. Having one of the world’s largest tech companies as a partner opens doors to additional opportunities. The warrant structure also aligns Google’s interests with TeraWulf’s long-term success.

The Lake Mariner facility represents just the beginning. TeraWulf operates other sites that could potentially serve AI customers. The company’s focus on zero-carbon energy sources also appeals to environmentally conscious tech giants.