TeraWulf howls on AI hosting deal, Google’s new 8% stake

TeraWulf jumped more than 32% in early trading this morning after it announced two 10-year $3.7 billion AI hosting deals with AI cloud platform Fluidstack. The agreement includes two five-year extension options, which could bring the total contract revenue to $8.7 billion if exercised.

Google will “backstop $1.8 billion of Fluidstack’s lease obligations” and will acquire 41 million shares of TeraWulf via warrants, representing an 8% stake of the company. 

Under the high-performance computing colocation agreements, the bitcoin mining company will deliver 200 megawatts of IT load at its Lake Mariner, New York, data center.

“Fluidstack is proud to be a trusted provider of critical compute for the world’s leading AI labs. Our partnership with TeraWulf reflects our shared commitment to delivering rapid, scalable infrastructure for the AI frontier,” César Maklary, Fluidstack cofounder and president, said in the release. 

The company also announced a long-term ground lease for 183 acres at the Cayuga site in Lansing, NY, a deal that “marks a major step forward in the company’s expansion of high-performance computing (HPC) and AI data center hosting.”