Microsoft has agreed a $9.7 billion partnership with data centre operator IREN, granting it access to Nvidia’s latest chips in a move designed to ease the computing bottleneck that has hampered the company’s ability to fully capitalise on the artificial intelligence boom.
The announcement sent shares of IREN (IREN.O) soaring by as much as 24.7% to a record high on Monday, before settling nearly 10% higher. Shares of AI server manufacturer Dell also rose about 1%, as it will supply IREN with Nvidia’s GB300 chips and related equipment under a deal worth roughly $5.8 billion, which Microsoft (MSFT.O) will utilise.
Expanding AI capacity
The five-year deal highlights the AI sector’s intensifying demand for computing power to run applications such as ChatGPT. It comes after several major tech firms reported earnings last week that pointed to capacity shortages constraining their ability to fully benefit from the AI surge.
By partnering with IREN, Microsoft can boost its computing resources without building new data centres or sourcing additional power — two key obstacles to scaling its AI infrastructure. The agreement also allows the company to avoid heavy upfront spending on hardware that risks rapid obsolescence as new generations of chips emerge.
Industry momentum
Soaring demand for AI infrastructure has propelled so-called “neocloud” providers such as CoreWeave (CRWV.O) and Nebius Group (NBIS.O) — which offer cloud services based on Nvidia processors — to the forefront of the AI industry. Microsoft recently entered a $17.4 billion infrastructure agreement with Nebius to further expand its capacity.
IREN, valued at $16.52 billion as of its last close after its shares surged more than six-fold this year, operates several data centres across North America with a combined capacity of 2,910 megawatts.
The company said Nvidia chips would be deployed in stages through 2026 at its 750-megawatt campus in Childress, Texas, alongside new liquid-cooled data centres capable of delivering around 200 megawatts of critical IT capacity.
IREN noted that funding from Microsoft’s prepayment will help finance part of its deal with Dell. However, the contract with Microsoft may be cancelled if delivery deadlines are missed.
In a separate development on Monday, AI cloud start-up Lambda announced a multibillion-dollar agreement with Microsoft to provide Nvidia-powered AI infrastructure, further underscoring the company’s expanding investments in next-generation computing.
Pakistan and the European Union have agreed to step up counterterrorism cooperation as security concerns over Afghanistan grow and tensions between...
Armenian authorities have detained 10 more people in a vote-buying investigation involving the opposition Strong Armenia party, just two days befor...
The head of the Russian-led Collective Security Treaty Organization (CSTO) says Armenia has effectively withdrawn from the military alliance, despi...
Saudi Aramco has ordered staff to evacuate its headquarters amid escalating Houthi attacks on the kingdom. Two people were killed in an attack on Dammam airport, while Iran's IRGC Navy claimed strikes on seven vessels and warned the U.S. of a wider response.
Russian strikes on Ukraine overnight killed at least two people and injured 15 others, including two children, Ukrainian authorities said. Meanwhile, Russia said it had intercepted the vast majority of 630 Ukrainian drones launched towards Moscow.
Russia is willing in principle to resume peace talks with Ukraine and the United States in November, Kremlin aide Yuri Ushakov said after President Vladimir Putin met U.S. special envoy Steve Witkoff in St Petersburg.
Super typhoon Champi is set to batter Japan’s Okinawa Prefecture from Friday (23 October), bringing violent winds, torrential rain and waves up to 11 metres high, as airlines cancel flights and organisers scrap a major festival.
The modern state has been formed within the framework of the principle of secularism. For this reason, the principle of secularism is reflected in constitutional texts, which are regarded as a social contract and regulate relations between the state and society (citizens).
Azerbaijan's economy is forecast to grow by 1.7 per cent in 2026 and 2.3 per cent in 2027, according to the International Monetary Fund (IMF), while growth across the wider Caucasus and Central Asia region is expected to slow.
As fuel prices surge nearly 37 per cent and protests over living costs turn violent, French President Emmanuel Macron is seeking fresh energy supplies and partnerships in the Gulf. But can diplomacy abroad ease mounting pressure at home?
Azerbaijan and Georgia are targeting more than $2 billion in bilateral trade as the neighbouring countries strengthen energy partnerships, expand transport links and pursue new investment opportunities.
More than 200 U.S. business leaders have joined Secretary of State Marco Rubio in Uzbekistan as Washington steps up efforts to turn closer diplomatic ties with Central Asia into trade and investment deals.
Thirty-five years after restoring independence, Azerbaijan's economy has more than tripled in real terms. Official data reveal how investment, manufacturing, private enterprise and digital development have reshaped the country's economic landscape.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment