Google has decided to back Bitcoin-mining firm Cipher in its AI hosting agreement with Fluidstack. In return for $1.4 billion guarantee, Google will acquire a 5.4 percent equity stake in Cipher — making for 24 million shares.
Founded in 2021, Cipher Mining is a New York-headquartered firm with a current market cap of $5.56 billion making it among the top five bitcoin mining firms internationally. The company now wishes to expand its participation into advanced computing and AI
Cipher has announced a 168 MW AI hosting agreement with AI could platform Fluidstack. The deal, slated to span ten years, is projected to churn $3 billion in revenue within the period.
“We are thrilled to be working with Fluidstack to develop HPC data centers, and we look forward to welcoming Google as an investor in Cipher. This transformative transaction reinforces our HPC momentum as we continue to attract attention for our large and growing pipeline of sites,” said Tyler Page, CEO, Cipher.
Google is set to receive warrants for its 5.4 percent equity ownership stake in Cipher. The transaction could be subject to adjustment or potential cash settlement under certain circumstances.
Notably, this deal marks another one in the AI-Web3 space for Google in recent months.
Last week, for instance, Google joined forces with Coinbase to launch an AI payment protocol with support for stablecoins. The company has also teamed up with Microsoft to pour billions into AI development in the U.K. market.