Microsoft at this time stated it had signed a $9.7 billion buy settlement for AI cloud capability from bitcoin miner-turned-neocloud firm IREN.
The transfer marked one of many greatest industrial validations but for the upcoming neocloud sector — referring to a bunch of knowledge heart corporations that developed from bitcoin mining into synthetic intelligence infrastructure.
Beneath the five-year contract, Microsoft will acquire entry to Nvidia GB300-based AI techniques hosted in Texas.
IREN, previously recognized for its large-scale Bitcoin mining operations, will purchase $5.8 billion price of GPUs from Dell Applied sciences and expects practically $1.9 billion in annualized income from the deal.
The announcement despatched IREN’s shares hovering greater than 30% in premarket buying and selling, extending a 500% rally this yr fueled by the AI {hardware} increase.
Based throughout the Bitcoin mining wave, IREN joins friends like CoreWeave and Crusoe in redeploying energy-intensive infrastructure towards AI workloads.
The deal is indicative of how miners’ once-volatile {hardware} fleets are more and more considered as strategic compute belongings, bridging the hole between blockchain and AI.
Microsoft, in the meantime, has leaned on leasing contracts with such suppliers to satisfy surging demand for Azure AI providers amid an ongoing world scarcity of GPU capability.
