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.
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Australia has been plunged into mourning following the deadly shooting at a Jewish holiday gathering on Sydney’s Bondi Beach, with the funeral of 10-year-old Matilda marking a deeply emotional moment for the nation.
U.S. President Donald Trump delivered a wide-ranging address from the White House in which he sought to highlight what he described as his administration’s achievements while laying the groundwork for his plans for the year ahead and beyond, on Wednesday (18 December).
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Cambodia must be the first to declare a ceasefire in the ongoing border conflict, Thailand said on Tuesday (16 December), as fighting continued despite earlier claims that hostilities would stop and at least 52 people have been killed on both sides.
The latest clashes between Thailand and Cambodia mark a dangerous escalation in one of Southeast Asia’s oldest and most sensitive disputes.
In the complex world of international diplomacy, the ongoing tensions between India and Pakistan have raised significant questions about the role of third-party mediation.
The fourth European Conference on Azerbaijani Studies was held in Vienna, Austria, on 5 December, by the European Network for Azerbaijani Studies and the Strategic Consultancy Group.
President of the Republic of Azerbaijan Ilham Aliyev is visiting the United Arab Emirates at the invitation of President Sheikh Mohamed bin Zayed Al Nahyan on Wednesday, 17 December, as the two countries seek to further strengthen their partnership.
Warner Bros Discovery’s board rejected Paramount Skydance’s $108.4 billion hostile bid on Wednesday (17 December), citing insufficient financing guarantees.
Ford Motor Company said on Monday it will take a $19.5 billion writedown and scrap several electric vehicle (EV) models, marking a major retreat from its battery-powered ambitions amid declining EV demand and changes under the Trump administration.
Iran has rolled out changes to how fuel is priced at the pump. The move is aimed at managing demand without triggering public anger.
U.S. stock markets closed lower at the end of the week, as investors continued to rotate out of technology shares, putting pressure on major indices.
The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) cut its benchmark interest rate by 25 basis points to a range of 3.50% to 3.75% following its two-day policy meeting, according to an official statement issued on Wednesday, 10 December.
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