What Is Fluidstack and Why the Sky-High Valuation Talk?

Fluidstack runs an AI cloud platform that top labs like Anthropic rely on for heavy compute needs. The Information It pulls together resources from different providers, with a big focus on handing out Google TPUs to customers who want cheaper, specialized AI hardware. This setup helps Google spread its chips beyond its own data centers, taking on Nvidia in the process.

Core Business: AI Compute Marketplace

At heart, Fluidstack acts as a bridge for AI workloads. It offers on-demand access to TPU clusters, which Google prices low—like $0.46 per FP8 PFLOP-hour at high use, per posts from analysts on X. WebProNews reports that this partnership lets smaller devs and companies grab TPU power without locking into full Google Cloud setups.

Massive Deals Driving the Hype

In November 2024, Fluidstack signed a 10-year deal to fill Cipher Mining’s entire 300 MW Barber Lake site in Texas. That locks in $830 million in revenue, with potential up to $9 billion including extensions, plus a $333 million Google backstop for debt, according to Yahoo Finance and DCD.
Google’s pushing TPUs hard, with major deals worth billions that Fluidstack helps execute.
Other ties include Anthropic’s TPU expansions, feeding billions into Google’s cloud.

Breakneck Expansion Signals Confidence

Fluidstack just moved its global HQ to Midtown Manhattan, NYC, from overseas. This brings over 1,000 jobs to New York State—300 permanent ones averaging $144,000 salary, plus 800 construction gigs. They’re also building data centers there and in Texas, ramping up for U.S. clients. CEO Gary Wu called compute a “strategic national asset” in the PR Newswire announcement. Growth offices are coming to Austin and San Francisco too.

Why Investors Are Pouring In

Fluidstack’s chasing over $700 million in funding at a $7 billion valuation, per Bloomberg, led by Situational Awareness—the fund from ex-OpenAI researcher Leopold Aschenbrenner. That cash would scale TPU distribution amid AI’s compute boom. Deals like the Cipher one show real revenue muscle, while Google’s backing cuts risk. In a world where AI infrastructure eats capital, Fluidstack’s Google alliance, job creation, and locked-in contracts explain the frothy valuation chatter—it’s positioned as a key player in the shift from Nvidia dominance.