📌Microsoft signed a five-year contract with the Australian company IREN for $9.7 billion. The deal provides for the rental of cloud capacity for AI computing and is one of the largest in the field of AI infrastructure.

How the Microsoft–IREN agreement is structured

Under the agreement, Microsoft will have access to Nvidia’s Texas accelerator systems based on the GB300 architecture for a 20% upfront payment. To do this, IREN will purchase GPUs and hardware from Dell Technologies for $5.8 billion.

What Microsoft gains

This will allow Microsoft to strengthen its Azure platform and meet growing demand from OpenAI and other partners.

Why the contract matters to IREN

For IREN, which was previously involved in mining, this deal is a key step in the transition to the “neo-cloud” segment, where the company will become one of the leading suppliers of AI power. The company’s CEO estimates the contract will generate $1.94 billion in annual revenue.

How the deal fits Microsoft’s global AI strategy

Previously, Microsoft announced an investment of $30 billion in the UK’s AI infrastructure until 2028 – this deal logically fits into the corporation’s global AI strategy.