Microsoft is amplifying its capacity to meet surging demand for AI services with a substantial $9.7 billion partnership with Australia’s IREN, sealed on Monday. This five-year agreement allows Microsoft to tap into additional AI cloud resources, utilizing Nvidia’s advanced GB300 GPUs, which will be systematically rolled out at IREN’s facility in Childress, Texas, until 2026. The facility is projected to support a robust 750 megawatts of computational power.
In a parallel development, IREN has also announced plans to purchase GPUs and equipment from Dell, estimated at around $5.8 billion, to bolster its infrastructure.
This strategic alliance follows Microsoft’s recent launch of its initial production cluster featuring Nvidia’s GB300 NVL72 systems for Azure, specifically optimized for complex reasoning models and multi-modal generative AI applications. Last month, Microsoft further expanded its AI capabilities by securing a deal with Nscale for approximately 200,000 Nvidia GB300 GPUs, designated for three data centers in Europe and one in the United States.
Initially founded as a bitcoin-mining entity, IREN quickly pivoted to leverage its extensive GPU fleet for AI tasks, recognizing the lucrative potential within this fast-evolving sector. CEO Daniel Roberts indicated that while the Microsoft partnership represents a significant opportunity, it will account for only 10% of the company’s total capacity, projecting an annualized revenue boost of approximately $1.94 billion, according to Bloomberg.
Key Points:
– Microsoft invests $9.7 billion in AI cloud capacity through IREN.
– Partnership focuses on deploying Nvidia’s GB300 GPUs in Texas.
– Additional GPU and equipment purchases from Dell valued at $5.8 billion.
– Recent launches of optimized Azure production clusters highlight Microsoft’s AI strategy.
– IREN transitions from bitcoin mining to AI workloads, anticipating $1.94 billion in yearly revenue.
