Microsoft is leaving no stone unturned in its quest to safe extra compute capability for assembly its prospects’ heavy demand for AI providers.
On Monday, the Redmond-based tech large signed a $9.7 billion, five-year contract with Australia’s IREN to safe additional AI cloud capability. The deal will give Microsoft entry to compute infrastructure constructed with Nvidia’s GB300 GPUs, which will likely be deployed over phases by means of 2026 at IREN’s facility in Childress, Texas, deliberate to help 750 megawatts of capability.
IREN mentioned it’s individually shopping for GPUs and tools from Dell for about $5.8 billion.
The deal comes after Microsoft final month launched its first manufacturing cluster with Nvidia’s GB300 NVL72 techniques for Azure, which, the corporate mentioned, are optimized for reasoning fashions, agentic AI techniques and multi-modal generative AI.
Final month, Microsoft signed a take care of Nscale for roughly 200,000 Nvidia GB300 GPUs to a few information facilities in Europe and one within the U.S.
Just like rivals like CoreWeave, IREN began off as a bitcoin-mining operation, however shortly realized that its large assortment of GPUs have been higher put to make use of for AI workloads. The corporate has benefited massively from the shift in focus. The corporate’s CEO Daniel Roberts expects the Microsoft deal to take up solely 10% of the corporate’s complete capability and generate about $1.94 billion in annualized income, Bloomberg reported.
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