IREN has signed a $9.7 billion AI cloud large orders with Microsoft, and the stock price has pumped over 7%.

IREN Limited, a mining company transformed into a cloud computing company, signed a five-year GPU cloud service agreement with Microsoft (Microsoft) on November 3rd, with a total amount of approximately $9.7 billion. This collaboration will allow Microsoft to acquire AI computing facilities built with NVIDIA (NVIDIA) systems located in Texas, USA, and simultaneously advance cloud investment in the Middle Eastern market.

Microsoft partners with IREN to invest $9.7 billion in building an AI system in Texas.

According to IREN's statement, this 5-year contract is valued at approximately $9.7 billion, with Microsoft making an upfront payment of 20% as a prepayment. The contract allows Microsoft to utilize IREN's AI computing power built on NVIDIA GPU systems located in Texas.

At the same time, IREN pointed out that in order to fulfill the contract, the company will purchase $5.8 billion worth of GPUs and related hardware from Dell Technologies ( for the construction of this batch of AI systems.

Simultaneously announced the Middle East AI investment project, investing 7.9 billion dollars over 4 years.

On the same day, Microsoft President Brad Smith announced in Abu Dhabi that it will invest over $7.9 billion in the UAE ) for data centers, cloud services, and human development over the next four years.

This investment has been approved by the U.S. government to export AI chips to the Gulf region. Smith stated that Microsoft will nearly triple the computing scale of NVIDIA chips locally.

Microsoft is fiercely competing for computing power, partnering with emerging cloud providers to expand its AI layout.

In the past year, Microsoft has signed billion-dollar level cooperation agreements with several data center operators, including emerging cloud computing providers like IREN and CoreWeave (Neocloud). The goal is to secure computing resources ahead in the race for AI development.

Microsoft admitted last week that, despite investing large amounts of money, it still struggles to meet the enormous demand for cloud and AI services. This collaboration with IREN symbolizes its determination to continue expanding its AI capabilities.

To respond to the trend, IREN has transformed from a mining company to an AI cloud service provider.

Originally a bitcoin mining company IREN, it has transformed into a data center operator providing efficient computing required for AI in response to the huge AI wave, and is one of the new cloud enterprises. The competition in this field is quite fierce, with companies like CoreWeave, Nebius, Crusoe, and Nscale all vying for large clients such as Microsoft and OpenAI.

IREN CEO Daniel Roberts stated that after the full launch of the collaboration with Microsoft, it is expected to bring approximately $1.94 billion in annual revenue, accounting for about 10% of its total computing power, and there is still room to expand new contracts. Roberts emphasized:

“We have always regarded large cloud service providers as ideal partners. As both parties' computing power requirements and AI cloud capabilities improve, the pace of cooperation has also accelerated.”

In Texas, IREN indicates that the newly built Nvidia GB300 system will be deployed in phases starting next year, with a total design capacity of 750 megawatts. Additionally, IREN has a power scale of up to 2,000 megawatts at the Sweetwater Hub near Abilene, Texas, and has attracted several companies to discuss large-scale AI infrastructure deployment projects.

The news of the partnership has driven IREN's stock price up by over 7%.

After the news was released, IREN's stock price surged over 7%, closing at $67.75 before the deadline. So far, IREN's stock price has skyrocketed from this year's lowest price of $5.13 to a historical high of $75.73, a rise of about 1,420%, mainly driven by the enormous demand for computing power due to the AI boom.

( mining company IREN receives priority cooperation support from NVIDIA, with AI cloud revenue expected to reach 500 million.

This article reports that IREN has signed a $9.7 billion AI cloud deal with Microsoft, and the stock price has risen over 7%. It first appeared in Chain News ABMedia.