Google is deepening its push into artificial intelligence infrastructure with plans to lift its stake in bitcoin miner-turned-data-centre operator TeraWulf to 14%.
The technology group will provide a $3.2 billion financing backstop in return for warrants to purchase more than 73 million shares, supporting TeraWulf’s expansion of its Lake Mariner campus in western New York.
The deal, initially set at $1.8 billion for an 8% stake, was enlarged after AI cloud provider Fluidstack expanded a 10-year lease at the site.
TeraWulf also launched a $400 million debt offering to fund the build-out.
Chief executive Paul Prager called Google’s support “an extraordinary vote of confidence.” Analysts see TeraWulf as well placed to convert mining capacity into AI computing.
Data centres will be the backbone of the artificial intelligence revolution, powering innovations and upgrades.