TeraWulf (WULF) Stock: Google Partnership Sends Shares Soaring 55% on Massive AI Deal

TLDR

Table of Contents

TeraWulf signed a 10-year, $3.7 billion deal to provide 200 megawatts of computing power to AI cloud provider Fluidstack at its New York data center
Google will back the deal by guaranteeing up to $1.8 billion of Fluidstack’s lease obligations in exchange for warrants giving it an 8% stake in TeraWulf
The contract includes two optional five-year extensions that could bring total value to $8.7 billion
TeraWulf stock jumped over 55% following the announcement, trading at $8.55 compared to previous close of $5.46
The company expects 40 MW to come online in first half of 2026, with full 200 MW deployed by year-end

TeraWulf shares exploded higher on Thursday, jumping more than 55% after the Bitcoin miner announced a major partnership with Google. The stock traded at $8.55 compared to its previous close of $5.46.

The surge came as TeraWulf revealed a 10-year, $3.7 billion agreement with AI cloud provider Fluidstack. Under the deal, TeraWulf will provide 200 megawatts of computing power at its western New York data center.

The facility will be powered by hydroelectric and nuclear energy sources. Fluidstack provides single-tenant GPU clusters for AI training and inference to clients including Mistral AI and Black Forest Labs.

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Google’s involvement makes this deal particularly compelling for investors. The tech giant will guarantee up to $1.8 billion of Fluidstack’s lease obligations if the AI provider fails to meet its commitments.

In exchange for this backing, Google will receive warrants for 41 million TeraWulf shares. This represents approximately an 8% equity stake in the company.

The Google guarantee allows TeraWulf to access the financing needed to build out the massive computing infrastructure. Without this backing, securing such funding would be much more challenging.

Deployment Timeline and Revenue Potential

TeraWulf expects to bring 40 megawatts online in the first half of 2026. The company plans to have all 200 megawatts deployed by the end of 2026.

The initial 10-year contract is worth $3.7 billion in total revenue. However, the deal includes two optional five-year extensions that could add another $5 billion.

If both extensions are exercised, the total contract value would reach $8.7 billion. This represents a massive revenue opportunity for a company that reported a net loss of more than $79 million in the first six months of this year.

Market Context for Data Center Deals

This agreement reflects the intense demand for AI computing infrastructure across the technology sector. Major tech companies are racing to build enough capacity to meet current and projected future needs.

Google, Amazon, Microsoft, and Meta Platforms are expected to spend roughly $400 billion on data center infrastructure next year alone. This year’s spending is on track to exceed $350 billion.

The scale of investment highlights how critical computing capacity has become for AI development. Companies are making massive commitments to ensure they have access to the resources needed for training and running AI models.

TeraWulf’s deal represents the latest example of how infrastructure providers are benefiting from this demand surge. The company is positioning itself to capture a portion of the massive spending wave hitting the data center market.

The partnership also shows how established tech giants are working with specialized providers to meet their infrastructure needs. Rather than building everything in-house, companies like Google are forming strategic partnerships.

TeraWulf reported its second-quarter earnings alongside the deal announcement, showing the company continues to face financial challenges despite this major new contract.

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