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IREN Limited (NASDAQ:IREN) shares jumped in premarket trading on Monday after the company announced a multi-year, $9.7 billion GPU cloud services contract with Microsoft Corp. (NASDAQ:MSFT), one of the largest deals yet in the AI infrastructure sector. Under the five-year agreement, IREN will supply Microsoft with access to NVIDIA Corp. (NASDAQ:NVDA) GB300 GPUs, including a 20% prepayment. IREN has also partnered with Dell Technologies Inc. (NYSE:DELL) to purchase the GPUs and related equipment for about $5.8 billion. Also Read: Analyst Says Bitcoin Mining Revenue And EBITDA Could Rise The GPUs will be deployed in phases through 2026 at IREN's 750-megawatt campus in Childress, Texas. The site will feature new liquid-cooled data centers supporting up to 200 megawatts of critical IT load. IREN said it will fund the expansion through cash reserves, customer prepayments, operational cash flows, and additional financing. Co-Founder and Co-CEO Daniel Robert called the deal a milestone that highlights IREN's scalability as an AI cloud provider and expands its reach among global hyperscalers. Jonathan Tinter, Microsoft's president of business development and ventures, said the partnership aligns Microsoft's AI infrastructure goals with IREN's expertise in integrated data center operations and secured power capacity. Financial and Strategic Growth The momentum follows IREN's $674 million purchase of advanced NVIDIA GPUs, which significantly boosts its AI cloud capacity. The company now aims to generate $500 million in annualized revenue from its AI business by early 2026 and recently raised $1 billion through an oversubscribed convertible notes offering, underscoring investor confidence. Price Action: IREN shares were trading higher by 23.26% to $74.88 premarket at last check Monday. Microsoft rose 0.36% while Dell gained 4.28%. Read Next: Bitcoin Drops To $107,000 As Ethereum, XRP, Dogecoin Plummet Over 5% Photo by T. Schneider via Shutterstock
