Google Takes Stake In Bitcoin Miner TeraWulf As Part Of $3.7 Billion AI Deal

TeraWulf stock surged after signing a $3.7 billion AI hosting deal with Fluidstack. Google invests $1.8 billion and takes an 8% stake. Learn what this means for WULF stock.

by Rudraansh

Published On: January 20, 2026

TeraWulf stock (WULF) is making headlines after the company announced a major 10-year AI hosting agreement that could reshape the high-performance computing (HPC) and bitcoin mining landscape. The big twist? Google is stepping in as a key investor, taking an 8% stake in TeraWulf through a strategic partnership valued at billions of dollars.

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What’s Happening?

TeraWulf, known for its industrial-scale data centers in the U.S., has secured two 10-year HPC co-location agreements with Fluidstack, a company operating an advanced AI cloud platform. This move will significantly expand TeraWulf’s AI infrastructure capabilities, making it a major player in the hyperscale AI and HPC hosting sector.

Under these agreements, TeraWulf will deploy over 200 Megawatts (MW) of critical IT load at its Lake Mariner data center campus in Western New York. This development alone represents $3.7 billion in contracted revenue over the initial 10 years, with potential to hit $8.7 billion if two optional five-year extensions come into play.

Google’s $1.8 Billion Backing

Google (GOOGL) isn’t just dipping its toes in the water—it’s diving in. The tech giant plans to backstop $1.8 billion of Fluidstack’s lease obligations. This funding will help TeraWulf cover project-related debt and infrastructure buildout costs.

As part of the deal, Google will receive around 41 million shares of TeraWulf, giving it about an 8% stake in the company. This is a bold move by Google, signaling its strong interest in AI infrastructure and HPC hosting, areas that are expected to explode in demand thanks to the growing adoption of AI and machine learning models.

Impact on WULF Stock

Investors loved the news. WULF stock soared more than 25% on Thursday, reaching its highest price since January. The rally has pushed the stock 165% higher from its April low, though it still remains down about 3% for the year through Wednesday.

Financial analysts are also bullish. Clear Street described these deals as “transformative agreements” that advance TeraWulf’s position as a leading provider of hyperscale AI/HPC infrastructure. The firm maintains a buy rating on WULF stock with a price target of $9.

Timeline for Deployment

TeraWulf plans to deliver 40 MW of IT load online by the first half of 2026 and aims to complete the remaining capacity by the end of next year. This means significant revenue inflows and strong growth potential for the company starting in 2026.

Why This Matters for Canada and the U.S. Investors

For investors in Canada and the United States, this deal signals two major trends:

AI Infrastructure is the New Gold Rush: Companies like TeraWulf are positioning themselves as backbone providers for the AI revolution.
Big Tech is Betting Big: Google’s involvement shows confidence in long-term AI demand and infrastructure scalability.

WULF stock could become a hot pick for growth investors, especially as AI adoption accelerates in North America.

Google Stock Reaction

Interestingly, Google stock dipped less than 1% on Thursday, showing that while this is a strategic investment, it’s relatively small for a giant like Alphabet. Google shares are still up about 6% this year and remain strong after recent AI advancements and cloud growth.

What Analysts Are Saying

“Transformative for TeraWulf” – Clear Street
“Execution and funding are still watch items”, meaning there are risks, but the visibility for growth and profitability has significantly improved.

Key Highlights

Detail	Information
Deal Size	$3.7 Billion (10-year contract)
Optional Extensions	Up to $8.7 Billion total
Google’s Backing	$1.8 Billion
Google’s Stake in TeraWulf	~8% (41 million shares)
Initial Deployment	40 MW by H1 2026
Full Deployment	End of 2027
WULF Stock Jump	+25% on Thursday

What’s Next for WULF Stock?

If TeraWulf successfully executes this AI hosting expansion, WULF stock could see major upside over the next few years. However, execution risks, rising energy costs, and regulatory factors remain potential challenges.

Trending FAQs

1. Why did Google invest in TeraWulf?
Google invested $1.8 billion to support AI infrastructure and backstop Fluidstack’s lease obligations, securing an 8% stake in TeraWulf.

2. Is WULF stock a good buy now?
Analysts like Clear Street rate WULF as a buy, citing strong AI hosting demand and transformative growth potential.

3. How big is the TeraWulf and Fluidstack deal?
The deal is worth $3.7 billion over 10 years, with an option to extend up to $8.7 billion.

4. When will TeraWulf start delivering AI hosting services?
The first 40 MW of IT load is expected by H1 2026, with full deployment by the end of 2027.

5. Will this impact Google’s stock price?
Not significantly in the short term, as the investment is small relative to Google’s size, but it strengthens its AI ecosystem strategy.