IREN is setting the pace as the Microsoft deal could propel its position as a leading AI cloud service provider. Given that the Australian company is successful in expanding its planned GPU deployments.
Microsoft is IREN, the Australian AI cloud provider’s biggest customer yet.
It’s known in the market that the tech powerhouse wants to accelerate its innovative roadmap, especially to build more intuitive, faster, and responsive AI models. It’s all part of the game- which company will really come out on top?
Competition across AI is sturdy, and honestly, without the right resources, it is impenetrable. It’s why the tech giants (America’s Big Seven) are scrambling to-and-fro for infrastructure that truly powers their AI models.
How will they drive the AI roadmap without the right fuel? That is the conundrum they’re facing right now. Billions are invested in data centers and such deals. And if looked at closely, there’s no stopping.
It’s the AI boom. Think of CoreWeave, Oracle Cloud, and NVIDIA with multiple partnerships and deals up their sleeves. IREN is just the newcomer.
This $9.7 billion agreement is a multi-year one, spanning 5 years with a 20% prepayment clause. Now imagine Microsoft’s urgency. At least that’s what can be grasped from such deals.
IREN will open the tech powerhouse’s access to NVIDIA’s GB300 GPUs, which it plans to purchase from Dell Technologies for over $5.8 billion. It plans to deploy these GPUs across 2026 at its 750MW facility located in Childress, Texas, while also building new liquid-cooled data centers that support 200MW worth of critical IT load.
This will materialize in four different phases.
To fund all of these endeavors, IREN plans to use its existing cash flow, existing cash, and customer prepayments for additional financial initiatives.
This alliance is not merely positioning IREN as a credible and trusted AI cloud service provider. It’s also opening its doors to new customer segments and global hyperscalers.
This is the turn of the needle. The market is changing rapidly. As a result of the announcement, IREN’s stocks in pre-trading hours on Monday surged 20%.
“We’re proud to announce this milestone partnership with Microsoft, highlighting the strength and scalability of our vertically integrated AI Cloud platform,” said IREN’s co-founder and co-CEO, Daniel Roberts, in response.
