ONEW YORK, Nov 03 (Reuters): Microsoft has struck a $9.7 billion deal with data-centre operator IREN that includes access to Nvidia's advanced chips, aiming to ease the computing crunch that has kept the tech giant from fully cashing in on the artificial intelligence boom.
The news sent shares of IREN up more than 20 per cent in premarket trading on Monday. AI-server maker Dell rose 5 per cent as it would provide IREN with Nvidia's GB300 chips and other equipment Microsoft will use for about $5.8 billion.
The five-year deal shows the AI industry's growing hunger for computing power to run applications such as ChatGPT. It follows earnings from major tech companies last week that underscored capacity shortages were limiting their ability to fully benefit from the boom. Partnering with IREN would allow Microsoft to expand computing capacity without building new data centres or securing additional power - two of the biggest hurdles slowing its ability to meet surging AI demand.
It will also sidestep heavy capital spending on chips that will lose value as newer, more powerful processors arrive.
IREN, which has a market value of $16.52 billion after a more than six-fold surge in its shares this year, has multiple data centres across North America.
Microsoft signs $9.7b contract with IREN for Nvidia chips
FE Team | Published: November 04, 2025 00:42:28
Microsoft signs $9.7b contract with IREN for Nvidia chips
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