TeraWulf stock jumps more than 10% as Google boosts stake in data center operator
Thomas Fuller | SOPA Images | Lightrocket | Getty Images
TeraWulf stock rallied more than 10% after Google hiked its stake in the bitcoin miner and data center operator as it funds an expansion of its Lake Mariner, New York, facility.
As part of the deal, Google will offer up to $1.4 billion in additional backstop, bringing its total to about $3.2 billion. It hikes Google’s stake in TeraWulf to 14% from 8% and enables the tech giant to buy about 32.5 million shares of the company’s stock.
TeraWulf CEO Paul Prager said in a release that the agreement solidifies the company’s “strategic alignment with Google” to help build advanced artificial intelligence infrastructure.
Last week, shares skyrocketed after the company signed two 10-year computing deals with AI cloud provider Fluidstack to offer more than 200 megawatts of capacity at its Lake Mariner data center space in western New York.
Shares of TeraWulf are up about 90% over the last week.
“This is a game changer in the industry,” Prager told CNBC’s “Power Lunch” last week. “If you have quality energy infrastructure and a management team and folks on the ground that understand how to extract value for it, this is the time, Lake Mariner is the place.”
Monday’s announcement hikes critical IT load to more than 360 MW, with Fluidstack exercising an option for another 160 MW at Lake Mariner. TeraWulf also said the deal equals $6.7 billion in contracted revenue and could reach as much as $16 billion through lease extensions.
Operations are expected to start in the second half of 2026.
“Fluidstack’s decision to expand so soon after our initial agreement speaks volumes about the quality, readiness, and scalability of our infrastructure,” TeraWulf CTO Nazar Khan said in a release.
Separately, TeraWulf also said it will offer $400 million in convertible senior notes due in 2031.
In this photo illustration, a person is holding a smartphone with the logo of US GPU hardware company Lambda Inc. (Lambda Labs) on screen in front of website.
Timon Schneider | SOPA Images | AP
Cloud computing startup Lambda announced on Monday a multibillion-dollar deal with Microsoft for artificial intelligence infrastructure powered by tens of thousands of Nvidia chips.
The agreement comes as Lambda benefits from surging consumer demand for AI-powered services, including AI chatbots and assistants, CEO Stephen Balaban told CNBC’s “Money Movers” on Monday.
“We’re in the middle of probably the largest technology buildout that we’ve ever seen,” Balaban said. “The industry is going really well right now, and there’s just a lot of people who are using ChatGPT and Claude and the different AI services that are out there.”
Balaban said the partnership will continue the two companies’ long-term relationship, which goes back to 2018.
A specific dollar amount was not disclosed in the deal announcement.
Founded in 2012, Lambda provides cloud services and software for training and deploying AI models, servicing over 200 thousand developers, and also rents out servers powered by Nvidia’s graphics processing units.
The new infrastructure with Microsoft will include the NVIDIA GB300 NVL72 systems, which are also deployed by hyperscaler CoreWeave, according to a release.
“We love Nvidia’s product,” Balaban said. “They have the best accelerator product on the market.”
The company has dozens of data centers and is planning to continue not only leasing data centers but also constructing its own infrastructure as well, Balaban said.
Earlier in October, Lambda announced plans to open an AI factory in Kansas City in 2026. The site is expected to launch with 24 megawatts of capacity with the potential to scale up to over 100 MW.
-
Sports2 years agoStory injured on diving stop, exits Red Sox game
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports3 years agoButton battles heat exhaustion in NASCAR debut
-
Sports3 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment1 year agoHere are the best electric bikes you can buy at every price level in October 2024