Google's ambition: from AI computing infrastructure to Crypto

By Karen Z, Foresight News

Google, the global technology giant, is accelerating its strategic layout in the fields of Crypto and AI computing.

Recently, a series of its actions have attracted widespread attention: through the partnership between AI cloud platform Fluidstack and Bitcoin mining company TeraWulf, it will acquire 8% of TeraWulf's equity; the Google Play Store is about to adjust its policies related to cryptocurrency exchanges and software wallets; and it has started preliminary negotiations with several cryptocurrency companies on the integration of stablecoins - these actions highlight Google's deep involvement in the fields of AI computing and cryptocurrency.

How did Google acquire an 8% stake in Bitcoin mining company TeraWulf?

TeraWulf Inc. (NASDAQ: WULF) is a vertically integrated zero-carbon digital infrastructure operator whose primary business in recent years has been Bitcoin mining and has recently expanded into high-performance computing.

In its second-quarter financial report, TeraWulf reported that it mined 485 bitcoins at its Lake Mariner facility, generating $47.6 million in revenue, a 33.7% increase from the $35.6 million in revenue reported in the second quarter of 2024. This also resulted in a 46.4% increase in cost of revenue, up from 39.1% in the second quarter of 2024. However, due to increased investments in high-performance computing and mining costs, TeraWulf's net loss widened to approximately $79.79 million in the first half of the year. As of June 30, 2025, the company held $90 million in cash, cash equivalents, and bitcoin, in addition to approximately $500 million in outstanding debt.

TeraWulf has signed two 10-year high-performance computing (HPC) hosting agreements with AI cloud platform Fluidstack, planning to provide over 200 megawatts of critical IT loads (equivalent to approximately 250 megawatts of total capacity) at its Lake Mariner data center campus in western New York. This data center is purpose-built for liquid-cooled AI workloads, designed to meet the scale, density, and elasticity required for next-generation computing.

In terms of financial terms, TeraWulf said the agreement represents approximately $3.7 billion in contract revenue over an initial 10-year term and includes two five-year extension options that, if exercised, would bring the total contract revenue to approximately $8.7 billion. The site is expected to have an 85% net operating income (NOI) margin and generate approximately $315 million in annual revenue.

Google plays a key role in this collaboration: it not only guarantees $1.8 billion in lease obligations to support project debt financing, but also obtains warrants to acquire approximately 41 million shares of TeraWulf common stock, corresponding to an equity ratio of approximately 8%, thus becoming a major shareholder of TeraWulf.

After the deal was announced, TeraWulf's stock price surged 50%, from the previous day's closing price of $5.46 to approximately $8.70, reflecting the market's optimistic expectations for the deal.

TeraWulf CEO Paul Prager said TeraWulf is uniting world-class capital and computing partners to provide the next generation of AI infrastructure powered by low-cost, zero-carbon energy. This transaction will accelerate TeraWulf's strategic expansion into high-performance computing."

From an industry perspective, many Bitcoin mining companies are diversifying into AI data centers (some are also shifting to Ethereum strategies). The core rationale behind this shift is that AI training and inference require significant computing resources, which are highly compatible with existing mining infrastructure, such as GPU clusters. Fluidstack, as a GPU provider for AI labs such as Mistral AI and Black Forest Labs, further enhances the value of the transaction.

For Google, the core motivation for involvement comes from the explosive growth in AI computing needs: it urgently needs reliable and sustainable computing infrastructure, and the Lake Mariner campus is equipped with dual 345 kV transmission lines, closed-loop water cooling system and low-latency fiber optic connections, making it an ideal choice.

Google Play adjusts its new Crypto policy

As the core distribution platform of the Android system, Google Play Store's policy adjustments directly affect hundreds of millions of users.

Under the new regulations , cryptocurrency exchanges and software wallet developers must obtain local government approval and comply with local laws and industry standards when launching services in specific regions. Applicable countries/regions include Bahrain, Canada, Hong Kong, Indonesia, Israel, Japan, the United Kingdom, the United States, and some EU countries. The policy will officially take effect on October 29, 2025.

There are differences in policy requirements in different regions, for example:

• Hong Kong: Cryptocurrency exchanges are required to obtain Type 1 (dealing in securities) and Type 7 (providing automated trading services) licenses issued by the Securities and Futures Commission (SFC), but software wallets do not have this requirement.
• United States: Exchanges and software wallet developers must register as money service providers with the U.S. Financial Crimes Enforcement Network (FinCEN) and as payment institutions in a state, or be federally/state-chartered banking entities;
• UK: Exchanges and software wallet developers must register with the UK Financial Conduct Authority (FCA).

This update, intended to strengthen regulatory compliance, sparked widespread industry discussion. Subsequently, Google officially responded, stating that non-custodial crypto wallets are not subject to the platform's new policy. Rich Widmann, Google Cloud's Head of Web3 Strategy, also confirmed that the policy does not cover non-custodial wallets, and that its use of the term "software wallet" was inaccurate and caused confusion. Rich Widmann also mentioned, "It's not 2015 anymore. We are working with dozens of devshops and protocols to build this ecosystem. "

For Crypto developers, this policy increases compliance costs. On the other hand, the exemption of non-custodial wallets is seen as a positive signal that encourages DeFi innovation.

In fact, Google Play has also previously issued relevant policies regarding transparency requirements for mining and distribution of tokenized digital assets, as well as NFT gamification mechanisms. For example:

• Do not allow any app to mine cryptocurrency on the device. However, allow apps to remotely manage cryptocurrency mining operations.
• If your app sells tokenized digital assets, or enables users to earn such assets, you must disclose this through the "Financial Features" disclosure form on the App Content page in the Play Console. Apps may not promote or embellish any income that can be earned through gameplay or trading activities.

From a user's perspective, this policy will enhance security and reduce scam apps. However, in emerging markets, users may face a shortage of apps. Overall, this reflects Google's cautious approach to the crypto space: supporting innovation while prioritizing compliance.

Google in preliminary talks with cryptocurrency firms about stablecoin integration

Stablecoins are also attracting the attention of technology giants.

In June 2025, Fortune magazine, citing people familiar with the matter, reported that Apple, X, Airbnb, and Google were all in preliminary discussions with cryptocurrency companies about integrating stablecoins. These companies may view stablecoins as a means to reduce transaction costs and optimize cross-border payments, a development that signals a shift in mainstream tech companies' interest in the cryptocurrency sector.

According to Crypto Briefing, Rich Widmann, head of Web3 strategy at Google Cloud, has confirmed that the company is exploring the use of stablecoins on its platform.

The author found that members of the Google Cloud team often express their views on Web3 and stablecoins on Twitter, and have discussed the current application of stablecoins around the world with members of the PayPal team.

summary

In the past, Google's progress in the crypto space has primarily been reflected in technical infrastructure support, investment strategies, and blockchain technology exploration. However, its strategy has been relatively cautious, with more indirect involvement than direct involvement in the cryptocurrency business. For example, it provides managed blockchain node services through Google Cloud, invests in numerous crypto-related companies (such as the crypto security platform Blockaid, Helium, and Dapper Labs) through its subsidiary Google Ventures (GV), and gradually relaxes its crypto advertising policies.

Recently, Google has adopted a multi-dimensional strategy in the fields of Crypto and AI computing: ensuring AI computing resources through TeraWulf transactions; regulating the application ecosystem through Google Play policies; and targeting the trillion-dollar payment market through stablecoin negotiations.

Computing resources have become a bottleneck in the global AI race. TeraWulf's deal with AI cloud platform Fluidstack marks a significant expansion from crypto mining to AI infrastructure. It further solidifies TeraWulf's position as an AI infrastructure provider and accelerates its expansion into high-performance computing. For Google, this represents more than just an equity investment; it also secures a strategic presence in the AI computing supply chain.