Microsoft to Buy AI Computing Power From IREN for $9.7 Billion

Cloud Computing Landscape - Microsoft is partnering with a cloud provider and Dell, utilizing Nvidia GPUs for cloud computing [1] - Iren, an Australian company, offers Texan-based compute, similar to other neo-clouds that originated as bitcoin miners [2] - Microsoft faces supply issues and is allocating more capital expenditure to neo-clouds like Nebulous and Enscale [2][3] - Neo-clouds focus solely on efficient data center operations, purchasing equipment from companies like Dell [4] Financial Deals and Investments - Iren is paying Dell $5.8 billion for equipment in a deal that exceeds $9 billion with Microsoft [5] - Morgan Stanley estimates $3 trillion will be needed for data center spending by 2028, with half coming from company cash flows and the other half from financing [6][7] - Alphabet is tapping both European (€3 billion) and US markets for financing, showing commitment to growth [6][8] Market Trends and Strategies - Tech giants are increasingly relying on external financing for CapEx growth [6] - Alphabet was rewarded for increased spending on compute, indicating a positive growth trajectory for its Google offering [8] - Lowering interest rates create an interesting way to continue to show commitment to grow [8]