Microsoft and IREN Sign $9.7 Billion Artificial Intelligence Deal

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

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

IREN expressed that it will finance the investments through its current cash reserves, customer prepayments, and additional financing sources. Daniel Roberts, IREN's co-founder and co-CEO, 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 AI sector.

After the agreement, IREN shares saw a nearly 30% increase in pre-market trading, drawing attention. The stock price is currently trading at $74.51 and has gained 489% year-to-date. According to Bernstein analysts, IREN's AI cloud expansion could generate annual revenues of $500 million by early 2026. Analysts revised their stock target to $75; this level was quickly tested following the news.

Companies transitioning from crypto mining to the AI sector are becoming a new trend, leveraging their existing energy infrastructure and data centers. Although ASIC devices are unsuitable for AI operations, these firms are gaining a significant advantage in GPU hosting services due to their robust infrastructures.