Key Takeaways
- Microsoft has signed a $9.7 billion, five-year deal with IREN Ltd. to secure additional AI cloud capacity, gaining access to Nvidia-powered GB300 systems hosted in Texas.
- IREN, a former bitcoin miner now pivoting to AI infrastructure, expects the partnership to generate about $1.94 billion in annual revenue once fully deployed.
- To deliver the project, IREN will purchase $5.8 billion worth of GPUs and equipment from Dell Technologies, reinforcing its position among the emerging “neocloud” providers.
- IREN shares jumped roughly 25% to $75, stretching its year-to-date gains past 500%.
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Microsoft Corp. has committed $9.7 billion to secure artificial intelligence cloud capacity from Australia’s IREN Ltd., a former bitcoin miner turned AI infrastructure provider, highlighting the intensifying global race for computing power.
Under the five-year agreement, Microsoft will gain access to Nvidia GB300-powered systems hosted at IREN’s 750-megawatt Childress, Texas facility.
To deliver the infrastructure, IREN will purchase $5.8 billion worth of GPUs and equipment from Dell Technologies, with deployment to be rolled out in phases throughout 2025.
Furthermore, the deal includes a 20% upfront payment and could generate about $1.94 billion in annual revenue for IREN once fully operational, according to CEO Daniel Roberts.
Market Reaction
The shift from bitcoin mining to an AI has proved highly profitable for IREN, as its shares have surged more than 500% this year.
In the short term, IREN shares surged to $75 following the announcement, before settling around $72, extending a more than 500% gain year-to-date as investors reacted to its deepening push into AI infrastructure
Technically, The Relative Strength Index (RSI) climbed to about 68, approaching overbought territory but underscoring strong momentum, while the MACD line crossed above its signal line, confirming a bullish reversal.
From Classrooms to Cloud Deals: Microsoft Expands Its AI Footprint
Microsoft’s deal with IREN builds on a series of high-profile initiatives that cement the company’s role in the fast-evolving global AI landscape. Among its latest efforts is the $4 billion “Microsoft Elevate” program, a multi-year initiative that combines financial support with access to Microsoft’s cloud and AI technologies.
The initiative seeks to provide schools, community colleges, and nonprofits with the tools to strengthen digital literacy, advance AI education, and prepare the workforce for the transformation driven by automation and intelligent systems.
Furthermore, in May 2025, Microsoft formed a strategic collaboration with India’s Yotta Data Services to integrate Azure AI capabilities into the “Shakti Cloud” platform, advancing the country’s ambitions for technological self-sufficiency. The partnership positioned Microsoft at the heart of India’s fast-growing AI infrastructure market, enabling local developers and enterprises to deploy advanced models directly through Azure’s ecosystem.
The company deepened its AI footprint further in October 2025, securing a 27% stake in OpenAI and restructuring its long-standing partnership into a formal equity arrangement. The deal grants Microsoft exclusive access to OpenAI’s next-generation models through at least 2032, ensuring a consistent pipeline of advanced AI capabilities to power its Azure AI platform and Copilot products.
Most recently, Microsoft joined forces with the Abu Dhabi National Oil Company (ADNOC), renewable energy firm Masdar, and energy investment company XRG to accelerate AI deployment across ADNOC’s value chain and develop sustainable energy solutions for Microsoft’s global AI and data-center growth.
The collaboration builds on Microsoft’s long-standing partnership with ADNOC, expanding it to include the co-development of AI agents that enhance autonomous operations and efficiency.
Read More: OpenAI Prepares for a $1 Trillion IPO after Restructuring Microsoft Partnership
