Microsoft strikes $9.7 billion deal with IREN to access advanced Nvidia chips and ease AI compute crunch

Microsoft has secured a pivotal five-year, $9.7 billion agreement with data-centre operator IREN, which includes guaranteed access to advanced Nvidia chips. This strategic move is designed to alleviate the critical computing bottleneck that has hampered the tech giant’s capacity to fully capitalise on the surging artificial intelligence (AI) boom, Reuters reported.

The announcement sent shares in IREN rocketing by over 20% in Monday’s pre-market trading. AI server manufacturer Dell also saw its stock climb 5%, as it is set to supply IREN with Nvidia’s powerful GB300 chips and related equipment, a contract valued at approximately $5.8 billion, which Microsoft will ultimately utilise, the report added.