A major AI compute alliance is taking shape in Texas, as Microsoft teams up with IREN to secure next-generation Nvidia chips through a long-horizon cloud supply deal worth billions.
In a new press release, IREN (IREN) announces that it has signed a five-year cloud services contract with Microsoft worth $9.7 billion, including a 20% prepayment.
The multi-year deal gives Microsoft access to Nvidia’s GB300 systems, delivered in phases across IREN’s 750 MW Texas campus alongside liquid-cooled data centers that will power the next wave of model training and inference workloads.
IREN, a former Bitcoin miner turned AI infrastructure operator, also inked a deal with Dell Technologies (DELL) to purchase Nvidia GPUs and additional equipment, including servers, software, licensing costs and others for roughly $5.8 billion.
IREN co-founder Daniel Roberts says the deal with Microsoft gives the firm legitimacy and paves the way for more deals with other Big Tech names.
“This agreement not only validates IREN’s position as a trusted provider of AI Cloud services, but also opens access to a new customer segment among global hyperscalers.”
Jonathan Tinter, Microsoft’s president of business development and ventures, calls IREN a “strategic partner.”
“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. This collaboration unlocks new growth opportunities for both companies and the customers we serve.”
News of the partnerships sent IREN shares skyrocketing more than 20% in premarket trading, while DELL soared 5%.
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