Bitcoin mining companies are increasingly repurposing their high-performance hardware to meet the growing demand for advanced computing, surpassing traditional blockchain activities. A clear example of this trend is the recent multi-year GPU cloud services agreement between IREN and Microsoft, which illustrates the growing convergence between mining infrastructure and the massive compute needs for AI.
In brief
- IREN has secured a five-year deal worth $9.7 billion with Microsoft, taking an important step in expanding its large-scale GPU infrastructure for AI.
- In addition to the deal with Microsoft, IREN entered into another $5.8 billion deal with Dell Technologies to acquire GPUs and related equipment to further enhance its AI capabilities.
IREN's AI hardware deals worth billions
Microsoft has entered into a five-year deal with IREN worth $9.7 billion, securing access to Nvidia GB300-powered AI systems hosted in IREN's data centers in Texas. This agreement allows Microsoft to increase its artificial intelligence computing capacity without building new data centers or organizing additional electricity supplies. It also reduces the financial risk of investing in expensive AI chips that can quickly become obsolete as new, more efficient models are released.
In addition to the agreement with Microsoft, IREN has reached an agreement with Dell Technologies to acquire GPUs and related equipment worth approximately $5.8 billion. Deployment of this hardware will occur in stages through 2026 at IREN's 750 MW Childress, Texas campus, supported by new liquid-cooled data centers designed to provide 200 MW of critical computing capacity.
To cover the costs necessary for the contract, the company plans to draw on its available cash flow, deposits paid by customers, revenues from ongoing operations and other financing methods.
The partnership highlights IREN’s expertise in cloud AI
Daniel Roberts, co-founder and co-CEO of IREN, explained that the agreement with Microsoft demonstrates its ability to develop its AI cloud platform and reinforces its reputation as a reliable provider of AI cloud solutions.
He added that this agreement “marks another big step forward for IREN as we continue to expand the large-scale deployment of GPUs across our 3GW Secure Energy portfolio in North America, strengthening our position as a leading provider of AI cloud services. »
From Microsoft's perspective, the partnership with IREN enables the delivery of advanced AI infrastructure to its customers. Jonathan Tinter, president of business development and ventures at Microsoft, noted that “IREN’s expertise in building and operating a fully integrated AI cloud, from data centers to the GPU stack, combined with their secure power capability makes them a strategic partner. »
Market reaction and broader trends
After the announcements, IREN stock rose sharply, rising more than 30% in pre-market trading. These deals highlight a broader trend among bitcoin miners turning to AI and data infrastructure to diversify their income beyond traditional mining. Similar approaches have been taken by HIVE Digital, MARA Holdings and TeraWulf.
In January, Riot Platforms signaled its intention to move beyond cryptocurrency mining, hitting a key milestone in June with the appointment of industry expert Jonathan Gibbs as Chief Data Center Officer.
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