Shares of Iren (IREN +11.42%) jumped more than 11% on Monday after the rapidly expanding artificial intelligence (AI) infrastructure provider announced a $9.7 billion cloud contract with Microsoft.
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Iren is becoming a major player in the AI boom
Iren will supply Microsoft with access to Nvidia's cutting-edge GB300 graphic processing units (GPUs) as part of a five-year cloud computing agreement. Iren intends to purchase the highly sought-after AI accelerators and related equipment from Dell Technologies for roughly $5.8 billion.
Iren plans to deploy the technology at its AI-optimized, renewable energy-powered facility in Childress, Texas, in the coming year.
"Iren's expertise in building and operating a fully integrated AI cloud -- from data centers to GPU stack -- combined with their secured power capacity makes them a strategic partner," Microsoft executive Jonathan Tinter said in a press release.
NASDAQ: IREN
Key Data Points
More big deals likely lie ahead
Demand for AI computing is growing faster than even multitrillion-dollar companies like Microsoft can provide. The deal should thus alleviate some of the tech titan's capacity shortages as it strives to meet the AI needs of its cloud computing customers.
Yet Microsoft isn't the only tech giant that's struggling to build enough data centers and related infrastructure to satisfy its AI requirements. So, this might not be the last blockbuster deal Iren strikes.
"This agreement not only validates Iren's position as a trusted provider of AI Cloud services, but also opens access to a new customer segment among global hyperscalers," co-CEO Daniel Roberts said.
