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.
China has announced it will extend its visa-free policy for a further year, with Swedish citizens now included in the scheme....
Russian Prime Minister Mikhail Mishustin has said that cooperation between Moscow and Beijing is deepening despite turbulence in global politics and t...
Brazil opens three weeks of events linked to the COP30 climate summit, hoping to showcase a world still determined to tackle global warming....
Key elections in New Jersey, Virginia, and New York City are entering their final stretch, with the latest polls showing competitive contests that hav...
German President Frank-Walter Steinmeier has announced that Germany will provide Ghana with €65 million (approximately $69 million) in development a...
China has announced it will extend its visa-free policy for a further year, with Swedish citizens now included in the scheme.
Russian Prime Minister Mikhail Mishustin has said that cooperation between Moscow and Beijing is deepening despite turbulence in global politics and the world economy.
Key elections in New Jersey, Virginia, and New York City are entering their final stretch, with the latest polls showing competitive contests that have attracted national attention.
German President Frank-Walter Steinmeier has announced that Germany will provide Ghana with €65 million (approximately $69 million) in development assistance.
Russia said on Monday that its troops had advanced in the eastern Ukrainian city of Pokrovsk, a transport and logistics hub that they have been trying to capture for over a year, but Ukraine said its forces were holding on.
At least 37 people have died and five are missing after devastating floods and landslides hit central Vietnam, officials said Monday, as a new typhoon threatens to worsen the disaster.
Russia has launched its new nuclear-powered submarine, the Khabarovsk, at the Sevmash shipyard in Severodvinsk, the Defence Ministry said Saturday.
U.S. President Donald Trump said he does not believe the United States is going to war with Venezuela despite growing tensions, though he suggested President Nicolás Maduro’s time in power may be nearing its end.
On October 21, 2025, an Azerbaijani Airlines (AZAL) Gulfstream G650, call sign 4K-ASG, touched down at Yerevan’s Zvartnots Airport. It was a historic event, commented many.
Alphabet Inc., the parent company of Google, is entering the U.S. dollar and euro debt markets with a multi-tranche senior unsecured notes issue.
Chinese electric carmaker BYD is making major strides in Europe, with sales surging nearly fivefold in September from a year earlier to just under 25,000 new registrations.
U.S. stocks were mixed late Wednesday as traders digested comments from Federal Reserve Chair Jerome Powell, who signaled that another interest rate cut in December is far from guaranteed. The Dow Jones Industrial Average and S&P 500 edged slightly lower, while the Nasdaq climbed on continued gains
U.S. chipmaker Nvidia has made history by becoming the first company in the world to reach a market value of 5 trillion dollars, driven by soaring demand for artificial intelligence technologies.
Nokia announced on Tuesday that chipmaker Nvidia will acquire a $1 billion stake in the company.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment