IREN Limited (NASDAQ:IREN) surged more than 24% in premarket trading Monday after announcing a five-year GPU cloud services deal with Microsoft (NASDAQ:MSFT) valued at approximately $9.7 billion, marking one of the largest AI infrastructure partnerships in recent months.
As part of the agreement, IREN will supply Microsoft with access to NVIDIA (NASDAQ:NVDA) GB300 GPUs, with Microsoft committing to a 20% upfront prepayment.
In a related move, IREN disclosed a separate $5.8 billion procurement agreement with Dell Technologies (NYSE:DELL) for GPUs and associated hardware, which will be deployed across its 750-megawatt campus in Childress, Texas. The company said installation will occur in stages through 2026, as it continues building liquid-cooled data centers capable of supporting around 200 megawatts of critical IT load across four development phases.
To finance the initiative, IREN plans to rely on a combination of existing cash reserves, customer prepayments, operating cash flow, and additional external funding.
Daniel Roberts, IREN’s co-founder and co-CEO, said the Microsoft deal “highlights the strength and scalability of our vertically integrated AI Cloud platform.” He added that the partnership “not only validates IREN’s position as a trusted provider of AI Cloud services, but also opens access to a new customer segment among global hyperscalers.”
Jonathan Tinter, Microsoft’s president of business development and ventures, praised the collaboration, noting that the companies are “delivering cutting-edge AI infrastructure for our customers,” and commended IREN’s “expertise in building and operating a fully integrated AI cloud — from data centers to GPU stack.”
IREN said the agreement cements its status as a leading AI cloud service provider and represents a major milestone in scaling up its GPU-driven infrastructure across its 3-gigawatt secured power portfolio in North America.