Microsoft inks $9.7B deal with Australia’s IREN for AI cloud capacity

Core Insights - Microsoft has signed a $9.7 billion, five-year contract with IREN to secure additional AI cloud capacity, utilizing Nvidia's GB300 GPUs [1] - IREN is also purchasing GPUs and equipment from Dell for approximately $5.8 billion [2] - Microsoft recently launched its first production cluster with Nvidia's GB300 NVL72 systems for Azure, optimized for various AI applications [2] - IREN, initially a bitcoin-mining operation, has shifted focus to AI workloads, expecting the Microsoft deal to account for only 10% of its total capacity and generate about $1.94 billion in annualized revenue [4] Company Developments - The contract with IREN will provide Microsoft with compute infrastructure to support 750 megawatts of capacity, deployed in phases through 2026 [1] - Microsoft has previously signed a deal with Nscale for around 200,000 Nvidia GB300 GPUs for data centers in Europe and the U.S. [3] Market Trends - The shift from bitcoin mining to AI workloads has significantly benefited companies like IREN, indicating a broader trend in the industry [4]