LET'S STAY ON THE AMD, OPENAI STORY. T. ROWE PRICE'S PORTFOLIO MANAGER TONY WANG, YOU HAVE EXPOSURE TO AMD.$70 MILLION OF MARKET CAP ADDED IN ONE DAY ALONE WHAT DOES THIS SIGNAL -- ALONE. WHAT DOES THE SIGNAL. TONY: I THINK IT IS EXCITING FOR AMD.I THINK IT GIVES THEM A REALLY BIG LEAGUE CUSTOMER TO SCALE AND THIS WILL PROBABLY ATTRACT OTHER CUSTOMERS TO THE ROADMAP AND CONTINUE TO BUILD OUT. I HAVE ALWAYS HAD THE THESIS THAT IT IS REALLY BIG AND IF COMPANIES CAN DELIVER ON THAT COMPUTE, THERE IS A LOT OF C ...

Core Insights - IREN Limited is expanding its GPU fleet by purchasing an additional 4,200 Blackwell B200 GPUs from NVIDIA, increasing its total to approximately 8,500 GPUs [1][10] - The Blackwell architecture provides significant improvements in AI compute performance and energy efficiency, allowing IREN to offer next-generation compute capabilities in a supply-constrained market [2] - IREN Limited is one of the largest and lowest-cost Bitcoin miners, achieving a 326% year-over-year hashrate growth in Q3 FY25, with an installed hashrate target of 50 EH/s [3] - AI Cloud services revenues for IREN surged 33% year-over-year to $3.6 million in Q3 FY25, indicating strong growth in this segment [4][10] - IREN faces strong competition in the Bitcoin mining market from companies like Strategy and CleanSpark [5] Financial Performance - IREN's hardware profit increased by 28.7% month-over-month to $63.3 million in July, with an annualized hardware profit of approximately $830 million [3] - The average revenue per Bitcoin for CleanSpark was $99,000, a 50% increase year-over-year, while IREN's cost structure remains competitive [7] - IREN's stock has appreciated 135.5% year-to-date, significantly outperforming the broader Zacks Finance sector and the Zacks Financial Miscellaneous Services industry [8] Valuation Metrics - IREN's stock is trading at a forward 12-month price/cash flow ratio of 82.39X, compared to the industry average of 26.72X, indicating a premium valuation [13] - The Zacks Consensus Estimate for IREN's 2025 earnings is 14 cents per share, unchanged over the past 30 days, following a loss of 29 cents per share in the same quarter last year [14]

Strategic Partnership & Expansion - Terwolf and Google's Fluid Stack are partnering to build one of the largest data center campuses in the United States, delivering hundreds of megawatts of AI-ready compute in a multi-billion dollar deal [2][3] - The partnership signifies a game changer for the industry, highlighting the value of quality energy infrastructure and effective management [5] - Terwolf is expanding its capacity, aiming for over 1,000 megawatts (1 gigawatt) in the next few years [8][10][11] Infrastructure & Capacity - Terwolf has 260 megawatts contracted and an exclusive option for an additional 170 megawatts with Fluid Stack Google for 30 days [9][10] - The company acquired the Kauga site, adding a potential capacity of up to 400 megawatts of high-power compute AI [10] - Terwolf's team has extensive energy infrastructure experience (25+ years), enabling them to identify valuable locations for high-compute AI customers [11] Regional Economic Impact - These deals are expected to revitalize areas that have faced economic challenges, creating opportunities for employees, contractors, and the state [6][7] - Terwolf is investing in areas like Eastern Maryland and Lake Mariner in upstate New York, contributing to regional development [5][6] Competitive Advantage - Terwolf's combination of scale, speed, and world-class partners like Fluid Stack and Google sets it apart in the industry [3] - Excess power and quality energy infrastructure are key advantages in the current market [4][5]

Financial Data and Key Metrics Changes - The company reported revenue of $105.1 million, representing a 625% year-over-year increase and a 106% quarter-over-quarter increase, driven by strong performance in the core business [11] - The annualized run rate revenue guidance was raised from $700 million to a new range of $900 million to $1.1 billion, reflecting strong demand and capacity expansion [4][13] - The company achieved positive adjusted EBITDA in its core AI infrastructure business ahead of expectations [3][21] Business Line Data and Key Metrics Changes - AI cloud infrastructure revenue increased more than nine times year-over-year, driven by high customer demand for corporate GPUs and near-peak utilization of the platform [11] - The company expects to have 220 megawatts of connected power by the end of the year, with 100 megawatts of active power [13][14] Market Data and Key Metrics Changes - The company is expanding its customer base significantly, adding large global technology customers such as Cloudflare, Process, and Shopify, while also maintaining a strong position with AI tech startups [6] - The demand for AI compute is expected to grow stronger, with the company ramping up capacity to support this growth [8] Company Strategy and Development Direction - The company is aggressively increasing data center capacity and expects to secure over one gigawatt of power by 2026 to capture industry growth [5] - The focus is on becoming a leader in AI cloud infrastructure, with significant investments in capacity to meet growing demand [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong momentum of the business and the exceptionally high demand for AI compute, indicating a bright future for the company [12][15] - The company is well-positioned to capitalize on the growing AI market, with a strong balance sheet and access to additional capital [7][49] Other Important Information - The company has raised over $4 billion in capital so far and has access to potentially billions more through non-core businesses and equity stakes [7] - The company is maintaining its CapEx guidance of around $2 billion for 2025 [15] Q&A Session Summary Question: What does the overall demand environment look like as we move into the second half of the year? - The demand environment in Q2 was very strong, with peak utilization achieved by the end of the quarter, and larger clusters attracting new large customers [18][19] Question: How should we think about adjusted EBITDA for the core business and the whole group going forward? - The core business reached adjusted EBITDA profitability this quarter, and the group anticipates turning adjusted EBITDA positive by the end of the year, but it will remain negative for the full year [21] Question: Can you provide an update on ARR this quarter? - ARR grew from $249 million in March to $430 million in June, with strong momentum continuing into July [22] Question: How should we think about revenue for next year with the one gigawatt of contracted power? - It is too early to provide 2026 guidance, but the midterm outlook remains strong, with several billion dollars of revenue expected in the coming years [27] Question: How are tariffs impacting your business and margins? - It is early to determine the definitive impact of tariffs, but the market is expected to balance out any short-term fluctuations [30] Question: What is the return on CapEx? - The company expects to break even on the hopper generation in two to three years, with potential to shorten the return on invested capital as higher margin software and services revenue scales [34] Question: Can you walk us through the timeline for the infrastructure build-out for this year? - The company is ramping up capacity with significant projects in New Jersey and Finland, expecting to have 220 megawatts of connected power by the end of the year [36][37] Question: What partnerships do you think are most meaningful? - The company has made strong progress with partnerships, including integrations with Mistral, Base 10, and Skypilot, which enhance the ease of use of its AI cloud [72] Question: How is NVIDIA Leptin impacting your business? - The partnership with NVIDIA has generated a significant pipeline of customers, enhancing the company's position in the AI ecosystem [91] Question: Do you expect to benefit from Europe's ramping up of AI investments? - Yes, the company is well-connected in Europe and expects to be a major AI infrastructure builder in the region [93]

COMPUTE = POWER ⚡️Elon Musk (@elonmusk):The @xAI goal is 50 million in units of H100 equivalent-AI compute (but much better power-efficiency) online within 5 years ...

Financial Data and Key Metrics Changes - Revenue grew nearly 400% year over year, with an annualized run rate revenue increase of nearly 700% [5] - The company ended the quarter with a solid cash balance of $1,400,000,000 [5] - April's annualized run rate revenue was $310,000,000, indicating strong demand continuing into May [17][41] Business Line Data and Key Metrics Changes - Significant improvements in AI cloud offerings, including SLURM based cluster upgrades that reduced downtime by around 5% [8] - New platform services moved from beta to general availability, enhancing overall service reliability and performance [9][10] - Expanded integrations with external AI platforms, allowing customers to bring existing tools into the ecosystem with minimal friction [11] Market Data and Key Metrics Changes - The company is well-positioned in the US, Europe, and the Middle East, with plans to expand capacity in these regions [5][6] - The demand environment for AI compute remains robust, with strong sales momentum continuing into Q2 [17][41] Company Strategy and Development Direction - The company is focused on building out its AI cloud infrastructure to serve a diverse customer base, including tech, media, entertainment, and life sciences [15][16] - Plans to achieve mid-single-digit billions in revenue in the midterm, with a focus on expanding capacity to support this growth [22][24] - The strategy includes building national AI factories in various geographies to tap into emerging markets [56][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving adjusted EBITDA profitability in the second half of 2025, with a focus on positive adjusted EBITDA in the core infrastructure business by Q3 [44][45] - The company anticipates medium-term EBIT margins to range between 20% to 30%, supported by the scaling of its AI cloud business [24][26] - Management highlighted the importance of technology quality and capital access as key differentiators in the competitive landscape [26][30] Other Important Information - The company announced new partnerships with NVIDIA and other industry leaders to enhance its technology stack and service offerings [6][13] - The deconsolidation of Teloka will impact financials and guidance, but the company retains a significant economic stake [62] Q&A Session Summary Question: What do you mean by midterm, and what are the building blocks to get there? - The base case plan calls for several billion dollars of revenue in the midterm, with a focus on scaling capacity to support this goal [35] Question: What drove the strength in Q1 ARR, and how do you feel about the full year? - Strong demand for GPUs and improved sales processes contributed to the strength in Q1 ARR, with continued robust demand expected [38][41] Question: When do you expect to achieve positive adjusted EBITDA? - Positive adjusted EBITDA is expected in the second half of the year, with the core infrastructure business likely reaching it by Q3 [44][45] Question: Can you provide an update on the reasons for raised CapEx guidance? - Increased CapEx guidance is due to earlier-than-expected spending and the need to ramp up capacity in response to demand [46][47] Question: Where do you see future growth in this business? - Future growth is expected from AI-native companies, enterprise clients, and national AI projects, with a focus on expanding data center capacity [54][56][58]