Microsoft Signs $9.7B AI Cloud Deal With IREN For Nvidia GPU Access

• IREN said that, as per the deal terms, IREN will provide Microsoft with access to Nvidia (NVDA) GB300 GPUs over a five-year term, with the contract also including a 20% prepayment.
• The company added that it has also agreed with Dell Technologies to purchase the GPUs and ancillary equipment for about $5.8 billion.
• IREN noted that the GPUs are expected to be deployed in phases through 2026 at IREN’s 750MW Childress, Texas campus.

IREN (IREN) said on Monday that it has signed a multi-year Graphics Processing Unit (GPU) cloud services contract valued at nearly $9.7 billion with Microsoft (MSFT).

Shares of IREN jumped nearly 22% in premarket trading on Monday, while Microsoft stock was marginally up.

IREN said that, as per the deal terms, IREN will provide Microsoft with access to Nvidia (NVDA) GB300 GPUs over a five-year term, with the contract also including a 20% prepayment.

The company added that it has also agreed with Dell Technologies to purchase the GPUs and ancillary equipment for about $5.8 billion. The company noted that the GPUs are expected to be deployed in phases through 2026 at IREN’s 750MW Childress, Texas campus.

The deployment will be conducted in conjunction with the delivery of new liquid-cooled data centers, which will collectively support 200 megawatts of critical IT load, according to IREN.

Executive View On The Contract

Co-Founder & Co-CEO of IREN, Daniel Roberts, said that the agreement also opens access to a new customer segment among global hyperscalers.

“It marks another major step forward for IREN as we continue to expand large-scale GPU deployments across our 3GW secured power portfolio in North America, reinforcing our position as a leading AI Cloud Service Provider,” Roberts said.

“IREN’s expertise in building and operating a fully integrated AI cloud — from data centers to GPU stack — combined with their secured power capacity, makes them a strategic partner,” said Jonathan Tinter, President of Business Development and Ventures at Microsoft.

AI Boost And Partnerships

The announcement of IREN’s partnership with Microsoft comes on the heels of Nvidia's announcement last week, which included a slew of partnerships aimed at scaling artificial intelligence.

Nvidia is collaborating with the U.S. Department of Energy to develop seven new artificial intelligence-powered supercomputers and launching its NVQLink architecture. 

The company also announced a $1 billion investment in the Finnish telecom equipment maker Nokia (NOK) to accelerate AI-RAN innovation and lead the transition from 5G to 6G.

Retail sentiment on IREN remained unchanged in the ‘bearish’ territory, with message volumes at ‘low’ levels, according to data from Stocktwits.

Shares of IREN have gained nearly 614% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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