Microsoft’s $9.7B AI Deal with IREN Boosts Data Power

Bitcoin mining platform turned AI data center infrastructure provider, IREN, 宣布 that it successfully secured a 5-year deal with Microsoft this week. The $9.7B deal would see IREN providing the computer giant with access to top-end NVIDIA chips and more. Here’s what you need to know.

Deal Overview: Inside Microsoft’s $9.7B Partnership with IREN

The strategic partnership enables Microsoft to access Nvidia’s most advanced chips via the IREN data center in Childress, Texas. This 576-acre facility has been fully optimized to handle advanced AI systems and can support high-density computing via the latest technologies.

Notably, this world-class data center is 100% powered by renewable energy, addressing one of the key problems of data centers. Additionally, it integrates direct fiber optic connectivity, furthering its high-speed data transmission capabilities. This Horizon 1 facility can support the most advanced Microsoft AI projects without the need to make any upgrades.

Why Microsoft Partnered with IREN

There are several reasons why Microsoft signed the IREN deal. For one, IREN provides access to the most powerful and advanced chips available today. It would cost Microsoft billions to create a similar center, and it would take over a year to complete. As such, this deal enables Microsoft to avoid making this long-term investment.

Avoid Obsolete Hardware in the Future

The main reason why the company has no desire to build its own data center is that it needs to be able to convert to more advanced chips in the coming years as they emerge. If Microsoft spent the money to purchase today’s most advanced chips, it would need to make further hard investments in the future to stay relevant.

Storage Capacity Issues

Another major reason Microsoft felt compelled to act is that capacity shortages have been found to be one of the main bottlenecks in the AI sector, limiting profits. Companies like Microsoft lack the capacity to handle the sheer amount of data that AI algorithms require. As such, IREN provides the services Microsoft requires to continue to expand its AI operations.

How IREN will use the funding

For their part, IREN will utilize at least part of the funding to complete their other deal with the computer manufacturer Dell. IREN has a $5.8 billion deal with the company to supply new Nvidia GB300 chips and other high-end equipment. Discussing the deals, IREN’s chief commercial officer, Kent Drape, spoke on how the agreement would allow his company to achieve a higher level of operations.

The Market Reacts

The stock markets were quick to react to the news of the billion-dollar deals’ completion. IREN has major jumps in value. At one point, the company’s stock was up 24%. Currently, it remains up 10%. Additionally, Dell saw a 1% boost in stock value.

Microsoft AI Ventures

Microsoft continues to go all in on AI technologies. The company has several strategic partnerships with leading AI firms and has spent billions procuring data center space around the globe. Already, the company has pledged $30B in investment funding to be spent between 2025 and 2028. Here are some of the company’s current AI ventures.

开放式人工智能

Microsoft has been a major investor in OpenAI, the company behind ChatGPT. In total, Microsoft has invested $13B since 2019, and it is currently the largest shareholder in the company’s public benefit entity. As part of the arrangement, Microsoft Azure was granted API exclusivity.

AI Data Centers

Microsoft has spent billions on data centers across the globe. Specifically, the company has invested $7.3B in the UAE, with a total of $25.2B designated to expand its data centers and cloud computing facilities. This spending is in addition to $1.5B spent on equity in the AI company G42. The latter investment will help Microsoft meet its goal to expand its data center capacity globally.

Lambda Labs Inc.

This year, Microsoft entered into a strategic partnership with AI cloud startup Lambda. This deal envisions Lambda providing new infrastructure, including thousands of NVIDIA’s latest chips, to expand AI data center capacity. As such, it marks another avenue in which Microsoft has turned to gain a competitive advantage in the global AI race.

Miners Successfully Pivot

This latest strategic partnership represents one out of a growing list of agreements between ex-Bitcoin miners turned AI infrastructure providers. Already, Riot (骚乱), TeraWulf (WULF), and Cipher Miner (CIFR) have made the conversion and seen immediate results with their share prices rising sharply after announcing the shift in strategy.

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Table: Leading Bitcoin miners pivoting to AI infrastructure (2025).

国际可再生能源机构

Australia-based IREN launched as a powerful Bitcoin mining data center. It was originally named Iris Energy before altering its name and business model. Like many other Bitcoin miners who have started to feel the crunch due to more competitiveness and lower mining rewards, the 公司 pivoted towards AI infrastructure.

Currently, IREN has several massive data centers located across the US. These locations provide 2,190 megawatts of computing power and are fully run using solar and other green energies. IREN was seen as the optimal decision for Microsoft due to many reasons, including its direct access to NVIDIA’s most advanced chips and its US-based operations.

Additionally, it recently updated its data centers to liquid-cooled facilities, furthering their processing capabilities and performance. News of this partnership will strengthen IREN’s market positioning and help to inspire other miners to make the conversion to AI infrastructure provided by Bitcoin miners.

Latest IREN (IREN) Stock News and Performance

Microsoft is Committed to the AI Battle

It’s easy to see that Microsoft is looking for a way to gain a competitive advantage in the AI wars. The company continues to seek out strategic partnerships that enable it to continue to expand AI operations without getting locked into long-term hardware commitments. This latest venture highlights this desire and is sure to push the company’s AI aspirations closer to its goals.

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