Microsoft-IREN deal: Tech giant inks $9.7 billion AI cloud pact for Nvidia chips; aims to bolster data centre capacity amid soaring AI demand

Microsoft has entered into a $9.7 billion cloud services agreement with Australian artificial intelligence infrastructure provider IREN, a deal that will give the tech major access to Nvidia chips as it scales its AI and cloud operations, AP reported.

The five-year agreement includes a 20% prepayment and is aimed at supporting Microsoft’s efforts to meet the surging demand for AI computing power. The announcement comes shortly after the Redmond-based company reported an 18% rise in quarterly sales to $77.7 billion, surpassing Wall Street estimates. The results, however, also drew attention to Microsoft’s massive investments in cloud infrastructure and AI capabilities.