Microsoft Signs $9.7 Billion AI Cloud Deal with Australian Firm IREN
7 Sources
[1]
Microsoft inks $9.7B deal with Australia's IREN for AI cloud capacity | TechCrunch
Microsoft is leaving no stone unturned in its quest to secure more compute capacity for meeting its customers' heavy demand for AI services. On Monday, the Redmond-based tech giant signed a $9.7 billion, five-year contract with Australia's IREN to secure further AI cloud capacity. The deal will
[2]
Microsoft enters approximately $9.7B contract with IREN that gives it access to Nvidia chips
Microsoft has entered into a $9.7 billion cloud services contract with artificial intelligence cloud service provider IREN that will give it access to some of Nvidia's chips. The five-year deal, which includes a 20% prepayment, will help Microsoft as it looks to keep up with AI demand. Last week
[3]
Microsoft Inks $9.7 Billion GPU Cloud Contract with Australian Firm IREN | AIM
IREN Limited, a Sydney-based AI cloud and data-centre company, on Monday signed a five-year GPU cloud services contract with Microsoft Corporation valued at approximately $9.7 billion. Under the agreement, IREN will provide Microsoft with access to NVIDIA GB300 GPUs. The deal includes a 20%
[4]
Australia's Iren lands $14.8b Microsoft deal for AI cloud services
Gift 5 articles to anyone you choose each month when you subscribe. Microsoft has signed an approximately $US9.7 billion ($14.8 billion) deal to purchase AI cloud capacity from Iren, becoming the Australian company's largest customer. The five-year agreement will provide Microsoft access to
[5]
Microsoft enters approx $9.7B contract with IREN that gives it access to Nvidia chips
Microsoft has entered into a $9.7 billion cloud services contract with artificial intelligence cloud service provider IREN that will give it access to some of Nvidia's chips. The five-year deal, which includes a 20% prepayment, will help Microsoft as it looks to keep up with AI demand. Last week
[6]
Microsoft signs US$9.7 billion contract with IREN for Nvidia chips
Data centre owner and operator IREN said on Monday it has signed a nearly US$9.7 billion cloud services contract with Microsoft to provide the tech giant with access to Nvidia's GB300 processors over a five-year period. The move is the latest attempt by Microsoft to boost AI and data center
[7]
Microsoft Strikes $9.7 Billion Deal With IREN for AI Computing Power -- Update
Microsoft has secured new computing power capacity with a $9.7 billion deal with IREN as big tech races to expand data center capacity across the U.S. Under the five-year agreement, Microsoft will gain access to IREN's Nvidia GB300 chips, giving it access to more data processing power as the tech
Share
Copy Link
Microsoft has entered into a massive $9.7 billion five-year contract with Australian AI cloud provider IREN to secure access to Nvidia's GB300 GPUs. The deal highlights Microsoft's aggressive expansion of AI infrastructure to meet growing demand for cloud-based AI services.
Microsoft Secures Major AI Infrastructure Deal
Microsoft has entered into a landmark $9.7 billion five-year contract with Australian AI cloud service provider IREN Limited, marking one of the largest AI infrastructure deals in recent history
1
. The agreement will provide Microsoft with access to cutting-edge Nvidia GB300 GPUs, addressing the tech giant's urgent need to expand its AI cloud capacity amid soaring customer demand.
Source: BNN
The Sydney-based IREN will deploy the infrastructure at its 750-megawatt campus in Childress, Texas, with rollout planned in phases through 2026
3
. The deal includes a substantial 20% prepayment, demonstrating Microsoft's commitment to securing priority access to these critical AI computing resources.Strategic Partnership Details
Under the agreement, IREN will provide Microsoft with access to compute infrastructure built with Nvidia's advanced GB300 GPUs, which are specifically optimized for reasoning models, agentic AI systems, and multi-modal generative AI applications
1
. This follows Microsoft's recent launch of its first production cluster with Nvidia's GB300 NVL72 systems for Azure.
Source: AIM
Jonathan Tinter, president of business development and ventures at Microsoft, emphasized the strategic value of the partnership: "IREN's expertise in building and operating a fully integrated AI cloud -- from data centers to GPU stack -- combined with their secured power capacity makes them a strategic partner"
2
.IREN's Transformation and Market Impact
IREN's journey from bitcoin mining to AI cloud services exemplifies the broader industry shift toward AI infrastructure. The company, which originally operated as a cryptocurrency mining operation, recognized the superior value proposition of deploying its GPU resources for AI workloads
1
. This strategic pivot has proven highly lucrative, with CEO Daniel Roberts expecting the Microsoft deal to generate approximately $1.94 billion in annualized revenue while utilizing only 10% of the company's total capacity.The market responded enthusiastically to the announcement, with IREN shares jumping 22% before the opening bell, while Microsoft shares also rose modestly
5
. The deal validates IREN's position as a trusted provider of AI cloud services and opens access to new customer segments among global hyperscalers.Related Stories
Infrastructure Investment and Financing
To support the Microsoft contract, IREN has simultaneously signed a $5.8 billion agreement with Dell Technologies to purchase the necessary GPUs and ancillary equipment
3
. The company plans to fund these substantial capital expenditures through a combination of existing cash reserves, customer prepayments, operating cash flows, and additional financing arrangements.The deployment will occur alongside the rollout of new liquid-cooled data centers supporting 200 megawatts of IT load, representing a significant expansion of IREN's capabilities
3
. This infrastructure investment underscores the massive scale required to meet enterprise AI demands.Microsoft's Broader AI Strategy
This IREN partnership represents just one component of Microsoft's aggressive AI infrastructure expansion. The company recently signed a similar deal with Nscale for approximately 200,000 Nvidia GB300 GPUs across multiple data centers in Europe and the United States
1
. These investments reflect Microsoft's determination to maintain its competitive position in the rapidly evolving AI market.Microsoft's financial commitment to AI infrastructure is substantial, with the company spending nearly $35 billion in the July-September quarter on capital expenditures to support AI and cloud demand
2
. Approximately half of this investment focused on computer chips, with the remainder allocated to data center real estate and related infrastructure.References
Summarized by
Navi
[2]
[4]
Related Stories
Iren secures $3.6 billion to supply Nvidia GPUs for Microsoft's Texas AI data center
28 May 2026•Business and Economy
Microsoft's $33 Billion Neocloud Strategy: Tackling AI Compute Crunch
02 Oct 2025•Business and Economy
IREN Secures $9.7 Billion Microsoft AI Deal, Sparking Stock Surge and Market Debate
03 Nov 2025•Business and Economy
Recent Highlights
1
OpenAI Launches Astra AI Model With Critical Cyber Abilities Amid Safety Debate
Technology
2
OpenAI Agents Escape Sandbox, Post 18,000 Messages on German Wiki to Share Hacking Techniques
Policy and Regulation
3
Anthropic AI Completes 10-Year Mathematical Proof Project in Just 11 Days Using Claude
Technology
Recent Highlights
Today's Top Stories
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Follow topics that matter to you and stay ahead.
