Nvidia commits $2.1 billion to IREN in massive AI data center expansion deal

Nvidia to invest up to $2.1 billion in IREN as part of AI data center deal

May 7 (Reuters) - Nvidia (NVDA.O), opens new tab will invest up to $2.1 billion in data center operator IREN (IREN.O), opens new tab, as part of a broader deal to deploy up to 5 gigawatts of infrastructure to keep up with soaring artificial intelligence demand. The tie-up, announced on Thursday, underscores the hunger for computing power amid surging adoption of AI, as frontier model developers and Big Tech firms ⁠funnel billions to secure capacity. Reporting by Zaheer Kachwala in Bengaluru; Editing by Sriraj Kalluvila Our Standards: The Thomson Reuters Trust Principles., opens new tab

IREN shares pop 13% on AI infrastructure deal with Nvidia

IREN shares popped 13% in extended-trading on Thursday after the data center operator announced a partnership with semiconductor giant Nvidia. Nvidia and IREN will deploy up to 5 gigawatts of the chip maker's DSX-branded infrastructure designs intended to power artificial intelligence workloads throughout the Australian firm's data center facilities across the world. IREN will issue Nvidia a five-year right to purchase up to 30 million shares of its ordinary stock at an exercise price of $70 per share, the company said in an announcement. Nvidia will have a right to invest $2.1 billion into the company via the deal. "AI factories are becoming foundational infrastructure for the global economy," Nvidia CEO Jensen Huang said in a statement. "Deploying these systems at scale requires deep integration across the full stack -- compute, networking, software, power and operations."

AI data center firm IREN's stock soars after it strikes $2.1B deal with Nvidia - SiliconANGLE

AI data center firm IREN's stock soars after it strikes $2.1B deal with Nvidia Neocloud company IREN Ltd. has secured a $2.1 billion commitment from the chipmaker Nvidia Corp. as part of a new data center partnership aimed at artificial intelligence workloads. The partners plan to deploy up to five gigawatts of Nvidia's DSX-branded infrastructure in the neocloud company's global network of data centers. Investors reacted positively to the news, with IREN's stock gaining more than 27% at one point today, before settling back to an 8% gain in late trading. New York-based IREN began life in 2018 as an Australian bitcoin mining startup that was originally called Iris Energy. While it cashed in on the original cryptocurrency boom in the early 2020s, it soon realized that there was an even bigger opportunity to be had in the AI market. In 2024, it rebranded itself as IREN and started buying up graphics processing units and other AI accelerators, marketing itself as a GPU-as-a-service provider, following in the footsteps of companies like CoreWeave Inc. Although IREN isn't nearly as well known as its rival, it has made some headlines recently. In November, it notably won a $9.7 billion contract with Microsoft Corp. to provide it with 200 megawatts of AI computing capacity. Then, just three days ago, it announced a deal to buy the data center infrastructure management software firm Mirantis Inc. for $625 million. IREN's cloud platform provides customers with access to bare metal GPU servers, and it allows companies with more advanced needs to set up custom AI data centers. It builds those facilities on its own data center campuses, so they can tap into the existing power infrastructure at those sites. It also manages them on behalf of customers. As part of today's deal, IREN will grant Nvidia a five-year right to purchase up to 30 million shares of ordinary stock at a price of $70 per share, which would generate $2.1 billion if the chipmaker makes good on that agreement. Nvidia Chief Executive Jensen Huang said in a statement that AI factories are rapidly becoming foundational infrastructure for the global economy. "Deploying these systems at scale requires deep integration across the full stack -- compute, networking, software, power and operations," he added. Nvidia has announced a string of multibillion-dollar agreements with data center infrastructure providers in recent weeks, including deals with companies like Corning Inc. and Marvell Technology Inc. In a second announcement, IREN said it has also agreed a five-year deal worth $3.4 billion to give Nvidia access to its managed GPU cloud services for "internal AI and research workloads."

Nvidia to invest up to $2.1 billion in IREN as part of AI data centre deal - The Economic Times

Nvidia is investing up to $2.1 billion in data centre operator IREN to deploy 5 gigawatts of AI infrastructure, addressing the immense demand for computing power. This partnership aims to accelerate AI factory deployment by integrating Nvidia's architecture with IREN's operations, with future focus on IREN's Texas campus.Nvidia will invest up to $2.1 billion in data centre operator IREN, as part of a broader deal to deploy up to 5 gigawatts of infrastructure to keep up with soaring artificial intelligence demand. The tie-up, announced on Thursday, ⁠underscores ⁠the hunger for computing power amid surging adoption of AI, as frontier model developers and Big Tech firms funnel billions to secure a capacity centre Shares of IREN were up around 9% in extended trading. The stock had closed at $56.85 in regular hours. ⁠IREN has issued to Nvidia a five-year right to buy up to 30 million shares ⁠at an exercise price of $70 per share. All four US tech giants reported results last week and signalled AI spending would not slow, with combined outlays set to surpass $700 billion this year. Thursday's partnership is intended to accelerate the deployment of large-scale AI factories by combining Nvidia's factory architecture with IREN's infrastructure operations, the companies said. Future deployments are expected to ⁠focus on IREN's 2-gigawatt Sweetwater campus in Texas. Last year, IREN signed a $9.7 billion cloud deal with Microsoft. The company is a so-called "neocloud" - firms that sell cloud computing services built on Nvidia's processors that allow Big Tech to access computing power without building new data centres.

IREN stock surges 27% on Nvidia partnership for AI infrastructure By Investing.com

Investing.com -- IREN Limited (NASDAQ:IREN) shares surged 27% following the announcement of a strategic partnership with NVIDIA (NASDAQ:NVDA) to deploy up to 5 gigawatts of AI infrastructure and a separate agreement to acquire Spain-based data center developer Nostrum Group. Under the partnership, NVIDIA and IREN will collaborate on deploying NVIDIA accelerated compute in DSX AI factories to expand access to AI-native, startup and enterprise customers. IREN issued NVIDIA a five-year right to purchase up to 30 million shares at $70 per share, representing a potential $2.1 billion investment, subject to certain conditions including regulatory approval. Future deployments are expected to focus on IREN's 2-gigawatt Sweetwater campus in Texas, which the companies expect to serve as a flagship deployment for NVIDIA's DSX architecture. "AI factories are becoming foundational infrastructure for the global economy," said Jensen Huang, founder and CEO of NVIDIA. "Deploying these systems at scale requires deep integration across the full stack -- compute, networking, software, power and operations. IREN brings the scale and infrastructure expertise to help accelerate the buildout of next-generation AI infrastructure globally." Separately, IREN announced an agreement to acquire Ingenostrum, S.L., marking its entry into the European market. The acquisition adds approximately 490 megawatts of secured, grid-connected power in Spain and increases IREN's total power portfolio to 5 gigawatts. The acquisition remains subject to customary closing conditions. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Nvidia to invest up to $2.1 billion in IREN as part of AI data center deal

May 7 (Reuters) - Nvidia will invest up to $2.1 billion in data center operator IREN, as part of a broader deal to deploy up to 5 gigawatts of infrastructure to keep up with soaring artificial intelligence demand. The tie-up, announced on Thursday, underscores the hunger for computing power amid surging adoption of AI, as frontier model developers and Big Tech firms funnel billions to secure capacity. o Shares of IREN were up around 9% in extended trading. The stock had closed at $56.85 in regular hours. o IREN has issued to Nvidia a five-year right to buy up to 30 million shares at an exercise price of $70 per share. o All four U.S. tech giants reported results last week and signaled AI spending would not slow, with combined outlays set to surpass $700 billion this year. o Thursday's partnership is intended to accelerate the deployment of large-scale AI factories by combining Nvidia's factory architecture with IREN's infrastructure operations, the companies said. o Future deployments are expected to focus on IREN's 2-gigawatt Sweetwater campus in Texas. o IREN last year signed a $9.7 billion cloud deal with Microsoft. o The company is a so-called "neocloud" - firms that sell cloud computing services built on Nvidia's processors that allow Big Tech to access computing power without building new data centers. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Sriraj Kalluvila)