Microsoft and IREN's $9.7 Billion Artificial Intelligence Agreement

Transitioning from Bitcoin mining to the artificial intelligence field, IREN has drawn attention with its $9.7 billion GPU cloud services agreement signed with Microsoft. In an announcement made on Monday, IREN stated that a five-year artificial intelligence infrastructure agreement had been established, indicating that this move has generated significant excitement among investors.

Under this agreement, Microsoft will provide IREN access to Nvidia GB300 GPU hardware. It was shared that the total value of the agreement is $9.7 billion, and it was also 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 for the purchase of 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 cover the investments with its existing cash reserves, customer upfront payments, and additional financing sources. Daniel Roberts, co-founder and co-CEO of IREN, stated that the agreement demonstrates the “power and scalability of the company’s vertically integrated AI cloud platform.” Jonathan Tinter, head of business development at Microsoft, 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 rose by nearly 30% in pre-market trading, attracting attention. The current share price is 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 expansion into the AI cloud could generate $500 million in annual revenue by early 2026. Analysts have revised their share target to $75; this level has been tested immediately following the news.

The trend of companies transitioning from crypto mining to the AI field is becoming more prevalent, leveraging their existing energy infrastructure and data centers. Although the unsuitability of ASIC devices for AI tasks is a disadvantage, these firms gain a significant advantage in GPU hosting services due to their robust infrastructures.