NVIDIA announces a long-term strategic partnership with IREN, laying out 5 gigawatts of AI infrastructure

NVIDIA announced that it has established a long-term strategic partnership with AI vertical integration cloud provider IREN (NASDAQ ticker: IREN). Together, they will deploy up to 5 gigawatts (GW) of AI infrastructure worldwide and sign a $3.4 billion cloud services contract. IREN will provide GPU hosting for a five-year term, accelerating the global rollout of AI factories.

NVIDIA and IREN team up to accelerate deployment of global AI factories

NVIDIA and IREN are expected to deploy up to 5 gigawatts (GW) of computing power worldwide. This collaboration aims to combine NVIDIA’s DSX AI factory architecture with IREN’s expertise in land acquisition, power supply, and infrastructure operations, providing enterprises and startups with high-performance accelerated computing resources. The campus in Sweetwater, Texas will serve as a benchmark for AI factory deployments.

NVIDIA founder Jensen Huang said that AI factories are the foundational infrastructure for driving the global economy. Large-scale deployment of these systems requires deep integration across the technology stack, including compute, networking, software, energy, and operations. IREN’s scale advantages will help accelerate the global construction of AI factories.

Five-year $3.4 billion contract strengthens GPU hosting services

According to the latest released agreement, IREN will provide NVIDIA with an AI cloud hosting service for five years with a total value of approximately $3.4 billion. The contract requires IREN to deliver a complete GPU cloud solution, including orchestration (Orchestration) and cluster management software, as well as coordinated operations with Mirantis to support NVIDIA’s AI research. IREN will transition from a bare metal provider to a fully managed service provider with integrated software and hardware capabilities. The service will be prioritized for NVIDIA’s internal AI R&D workloads.

IREN co-founder and CEO Daniel Roberts said he is pleased to further strengthen the partnership with NVIDIA through this agreement. The new agreement symbolizes IREN’s ability to provide fully managed cloud solutions for a broad and growing customer base.

IREN’s renewable energy advantages combined with NVIDIA to ensure stable power

IREN will deploy NVIDIA Blackwell air-cooled technology platform systems within its existing data center at the Childress, Texas campus. The plan initially covers approximately 60 megawatts (MW) of power capacity. The in-data-center rollout of Blackwell will significantly improve the operational efficiency of AI inference and training. Leveraging its vertically integrated operating model and the campus’s renewable energy advantages, IREN will ensure stable infrastructure power.

NVIDIA acquires IREN equity through subscription at $70 per share

In addition to the operational-level collaboration, this strategic alliance also includes an investment agreement. IREN has granted NVIDIA five-year warrants, allowing NVIDIA to purchase up to 30 million shares of IREN common stock at a price of $70 per share. Subject to satisfaction of regulatory conditions, NVIDIA will have the right to make a strategic investment of up to $2.1 billion into IREN in the future. This financial arrangement not only consolidates the long-term interests of both parties’ cooperation but also provides funding assurance for IREN’s subsequent infrastructure expansion.

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