TeraWulf, a Bitcoin miner, completed a deal with Fluidstack to build out its AI data center for $3.7 billion. Google will backstop $1.8 billion in exchange for ~8% ownership in TeraWulf.
Over the next ten years, the firm will bring more than 200 MW online at Fluidstack’s New York data center. If this deal goes well, it may be extended to an $8.7 billion partnership.
TeraWulf Pivots to AI
TeraWulf is, first and foremost, a Bitcoin miner, but that industry’s profit margins are suffering in 2025. Increased mining difficulties pushed the firm to consider an AI pivot last year, and it just finalized a major deal.
TeraWulf is leasing some infrastructure to Fluidstack, an AI cloud platform, and Google is playing a key role:
According to the published terms of this agreement, TeraWulf will provide 200 MW of IT load to the AI company for ten years. This will help Fluidstack build its AI compute capabilities, and the deal represents roughly $3.7 billion in contracted revenue.
However, there are also clauses to intensify the partnership, up to an $8.7 billion commitment.
“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,” claimed TeraWulf CEO Paul Prager.
Google & The Compute Market
Physical AI infrastructure is a rapidly growing market in the US, and TeraWulf has been an early leader in mining firms’ business pivot. A key piece of this deal indicates just how important this deal might be, though.
Google will backstop $1.8 billion of Fluidstack’s obligations, providing key assurance that the deal will go well.
The tech giant has been a key player in the AI race for years now, and it’s been regularly offering new agentic services lately. At face value, the firm isn’t too directly involved in this AI deal: it’ll gain an 8% pro forma equity ownership stake in TeraWulf, but it’s not helping with the technical challenges.
However, Google will help ensure that this deal goes smoothly, potentially benefiting the entire US AI market. Fluidstack and TeraWulf plan to bring 40MW online by H1 2026, with more than 200MW deployed by the end of that year.
Depending on how successful this rollout goes, the Lake Mariner data center campus might see substantial upgrades after that.
In short, this deal could provide a blueprint for how businesses can switch from Bitcoin mining to AI altogether.
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