TeraWulf shifts power capacity toward AI with Google support
Google increased its stake in TeraWulf to 14% through a $3.2 billion deal focused on powering AI workloads, not cryptocurrency mining.
TeraWulf has secured a $3.2 billion financial backstop from Google to develop a 160-megawatt data centre at its Lake Mariner site in New York. Google will receive warrants for 32.5 million shares, lifting its stake in TeraWulf to about 14%.
Unlike its existing Bitcoin mining activities, the new deal focuses exclusively on AI and high-performance computing (HPC) workloads. TeraWulf confirmed it will maintain its Bitcoin mining operations but has no plans for expansion in that area.
The pivot reflects a broader trend in the mining industry, where companies increasingly shift capacity toward AI following the April 2024 halving that cut block rewards.
Executives highlighted that while Bitcoin mining offers immediate cash flow and grid flexibility, the long-term growth lies in powering AI and HPC demand. Research from VanEck suggests that if miners redirected just 20% of their power toward AI hosting, the industry could see $13.9 billion in additional annual revenue.
TeraWulf’s leadership said the partnership with Google positions the company as a key player in building next-generation digital infrastructure.
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