Microsoft and IREN sign a $9.7 billion artificial intelligence deal.

IREN, which transitioned from Bitcoin mining to the field of artificial intelligence, drew attention with its $9.7 billion GPU cloud service agreement signed with Microsoft. In a statement made on Monday, IREN announced that a five-year AI infrastructure agreement had been made, indicating that this move has generated significant excitement among investors.

As part of this agreement, Microsoft will provide IREN access to Nvidia GB300 GPU hardware. While the total value of the agreement has been reported to be $9.7 billion, it has also been noted that Microsoft made a 20% upfront payment. Additionally, IREN announced that it has signed a separate agreement worth $5.8 billion with Dell Technologies to acquire GPUs and related equipment. It was stated that these GPUs will be gradually deployed at the 750 MW Childress campus in Texas by 2026.

IREN expressed that it will finance the upcoming investments through its existing cash reserves, customer prepayments, and additional financing sources. Daniel Roberts, co-founder and co-CEO of IREN, stated that the agreement showcases the “power and scalability of the company’s vertically integrated AI cloud platform.” Jonathan Tinter, Microsoft’s head of business development, emphasized that IREN’s expertise, ranging from data centers to GPU infrastructure, has made the company a strategic partner in the field of artificial intelligence.

Following the agreement, IREN shares saw nearly a 30% increase in pre-market trading, drawing attention. The stock price is currently trading at $74.51, and the company’s shares have gained 489% in value since the beginning of the year. According to Bernstein analysts, IREN's AI cloud expansion could generate $500 million in annual revenue by early 2026. Analysts revised their stock target to $75; this level was immediately tested after the news.

It is becoming a new trend for companies coming from crypto mining to shift to artificial intelligence due to their existing energy infrastructure and data centers. Although the ineffectiveness of ASIC devices for AI processes poses a disadvantage, these firms are gaining a significant advantage in GPU hosting services with their robust infrastructures.