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.
The United States carried out a third consecutive night of airstrikes against Iran, targeting military capabilities around the Strait of Hormuz as Don...
A United Nations official has accused Hamas of interfering with humanitarian aid distribution in the Gaza Strip, adding further pressure on civilians ...
Australia's internet safety regulator has accused some of the world's biggest technology companies of failing to do enough to combat child sexual abus...
The United States carried out a third consecutive night of airstrikes against Iran, targeting military capabilities around the Strait of Hormuz as Donald Trump announced the reinstatement of a blockade on Iranian shipping and proposed a 20% fee on cargo passing through the strategic waterway.
A United Nations official has accused Hamas of interfering with humanitarian aid distribution in the Gaza Strip, adding further pressure on civilians already facing severe shortages and worsening living conditions.
Australia's internet safety regulator has accused some of the world's biggest technology companies of failing to do enough to combat child sexual abuse and the growing threat of online sexual extortion.
The Trump administration has announced restrictions preventing American citizens in the Democratic Republic of Congo (DRC) from boarding commercial flights to the United States amidst a growing Ebola outbreak.
The 4th Shusha Global Media Forum will bring together nearly 160 media leaders, experts and officials from 54 countries in Azerbaijan's historic city of Shusha on 13-14 July, to discuss journalism’s role in peacebuilding, restoring public trust and tackling challenges.
Typhoon Bavi, the strongest storm to hit the eastern coast of mainland China this year, brought heavy rain, strong winds, flooding and landslides after making landfall in Zhejiang province on Sunday. More than 2.8 million people were evacuated to safety ahead of the storm.
President Ilham Aliyev is holding his annual question-and-answer session with international journalists at the 4th Shusha Global Media Forum in Azerbaijan.
The United States and Iran have significantly escalated their conflict, exchanging heavy missile and drone strikes across the Gulf region. Iran claims it has once again closed the Strait of Hormuz, a vital global shipping route.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 13th of July, covering the latest developments you need to know.
China has approved fast-fashion retailer Shein's long-awaited initial public offering (IPO) in Hong Kong, clearing the way for the company to pursue a stock market listing after previous attempts in the U.S. and London failed.
European carmakers have urged the European Union to make sure new “Made in EU” rules do not put existing investments in Türkiye and Morocco at risk.
Microsoft is expected to announce a new round of job cuts as early as next week as the technology giant looks to reduce costs, according to reports.
A Swedish court has ordered Alphabet-owned Google to pay about $1.5 billion in antitrust damages to price comparison platform PriceRunner, in one of Europe's largest competition-related awards against a major technology company.
U.S. President Donald Trump earned more than $1bn from cryptocurrency-related business ventures last year, according to his mandatory 2025 financial disclosure.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment