Microsoft Signs $9.7 Billion AI Cloud Service Agreement with IREN

According to Bloomberg, Microsoft has signed an agreement worth approximately $9.7 billion to purchase AI cloud computing power from Australian company IREN Ltd., becoming the largest customer of the Australian firm. In a statement released on Monday, IREN stated that the five-year agreement will enable Microsoft to utilize NVIDIA-accelerated systems built on the GB300 architecture in Texas to meet AI workload demands. The agreement also includes a 20% upfront payment. IREN further disclosed that it has agreed to purchase the necessary graphics processing units (GPUs) and related equipment from Dell for $5.8 billion. IREN CEO Daniel Roberts stated that once fully implemented, the agreement is expected to generate approximately $1.94 billion in annualized revenue. The agreement will utilize about 10% of IREN's total computing power, leaving room for the infrastructure provider to sign additional contracts and create extra revenue.