Google could take stake in bitcoin miner TeraWulf’s $19 billion AI project if Anthropic defaults

Google could become a part owner of a data center project developed by bitcoin miner TeraWulf if artificial intelligence company Anthropic fails to meet its rental obligations, according to a newly disclosed agreement.

The Silicon Valley giants agreed to backstop Anthropic’s obligations under a 20-year, $19 billion lease covering 401 megawatts of computing capacity at its Kentucky campus, TeraWulf said in a Wednesday filing.

The arrangement is meant to help TeraWulf secure financing for the project, which is expected to begin delivering capacity in late 2027.

If Anthropic defaults on its rent or becomes insolvent, Google can step in as the tenant and take over the lease. Furthermore, under certain conditions, it can pay a termination fee and take an ownership stake in Raylan Data, the TeraWulf subsidiary operating the project.

The size of that stake depends on how much Google pays, as the contract divides the termination fee by the total cost of developing and building the facility, including land, infrastructure, equipment and financing.

A termination payment equal to 30% of the project’s total cost, for example, would give Google a 30% stake in the subsidiary.

Google generally has to take over the lease instead of ending it, for the first six years after its support takes effect. The exception is if the TPU pods installed in the halls, Google’s own AI chips, can use less than half the power set aside for the tenant.

The obligations end if Anthropic, or a parent or subsidiary, holds an investment-grade credit rating for at least three months.

The agreements were signed on Nov. 4, though Google’s support for each of the three leased sections only kicks in once the final data hall in that section is delivered, per the filing. TeraWulf expects deliveries to run through the second quarter of 2028.

TeraWulf, which built its business around bitcoin mining, has increasingly shifted toward supplying power and infrastructure for AI companies. The Anthropic agreement is one of the largest contracts in that shift.

As such, any stake Google ends up with would be in the project subsidiary, not in publicly traded TeraWulf.

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