Microsoft signs $9.7B cloud deal to boost AI infrastructure
What's the story
Microsoft has signed a massive cloud services contract worth nearly $9.7 billion with data center operator IREN. The deal will give the former access to NVIDIA's GB300 processors over a five-year period. The move comes as part of Microsoft's strategy to strengthen its AI and data center infrastructure amid increasing demand for AI services that are outpacing cloud capacity at major tech companies.
Market reaction
IREN's shares jump nearly 18% in premarket trading
Following the announcement of the contract with Microsoft, IREN's shares jumped by nearly 18% in premarket trading. The company has also signed a separate agreement with Dell Technologies to procure the GB300 processors and related equipment for some $5.8 billion. The agreements with Microsoft and Dell Technologies position IREN to leverage advanced technology from NVIDIA and Dell Technologies.
Information
GB300 processors to be deployed in phases
IREN plans to deploy the GB300 processors in phases through 2026, at its 750-megawatt (MW) campus in Childress, Texas. The company has also revealed that its contract with Microsoft includes a 20% prepayment.