Microsoft has announced a $9.7B deal to buy AI cloud capacity from IREN. IREN is a startup that transitioned from Bitcoin mining to AI infrastructure. This is a significant move for the neocloud sector. It shows cryptocurrency miners are repurposing their computers for AI.
Under the five-year agreement, Microsoft will use Nvidia GPUs housed in Texas to power its AI services. IREN will purchase $5.8B in GPUs from Dell and expects almost $1.9B in annual revenue from the transaction.
IREN's stock rose more than 30% in premarket trade, part of a 500% rise this year fueled by AI hardware demand.
This move shows how Bitcoin miners, who were previously focused on cryptocurrency, are now transforming their massive fleets of energy-intensive machinery into significant resources for AI computing. It also demonstrates how huge tech companies like Microsoft rely on these miners to meet increased demand for GPU power, particularly as supply bottlenecks persist.
