Microsoft signed a $9.7 billion artificial intelligence agreement with IREN.

Microsoft and IREN: Details of the Major Agreement

US technology giant Microsoft has signed a comprehensive $9.7 billion agreement with Australia-based IREN Ltd. for Graphics Processing Unit (GPU) artificial intelligence cloud services. With this strategic partnership, Microsoft has become IREN's largest customer.

Details of the Agreement

IREN stated in a press release that this five-year agreement will provide Microsoft access to Nvidia's GB300 GPU models. Additionally, a 20 percent upfront payment will be made at the start of the agreement process.

Equipment and Facility Investments

IREN announced that it will acquire the necessary GPUs and related equipment from Dell Technologies for $5.8 billion. The GPUs will be used at IREN's 750 MW facility in Texas throughout 2026. Furthermore, new liquid-cooled data centers will be built to support 200 MW of critical computing infrastructure.

Statements from IREN's CEO

IREN CEO Danial Roberts expressed that the project, expected to be completed after this major agreement, will generate $1.94 billion in revenue. Roberts pridefully mentioned the partnership with Microsoft and noted that they have also had discussions with other large companies due to the advancement of artificial intelligence cloud capabilities.

Stock Performance

Following these developments, IREN shares have gained 28 percent in value, while Dell shares have increased by 4 percent. However, there was no noticeable change in Microsoft shares.