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Bitcoin Miner IREN Secures $3.4 Billion Nvidia AI Deal, With $2.1 Billion Share Option
TL;DR
IREN Limited has secured a $3.4 billion deal with Nvidia to deploy AI infrastructure, including a five-year option for Nvidia to purchase 30 million IREN shares at $70 each. Despite initial stock surges, IREN's earnings miss dampened enthusiasm.
Key points
- IREN Limited secured a $3.4 billion deal with Nvidia
- The deal includes a five-year option for Nvidia to buy IREN shares
- Nvidia can purchase up to 30 million shares at $70 each
- Deployment will begin at IREN's Sweetwater campus in Texas
- IREN will provide managed GPU cloud services over five years
Mentioned in this story
NvidiaIREN LimitedTexas
In brief
- Nvidia and IREN Limited announced a $3.4 billion cloud services deal, with plans to deploy up to 5 gigawatts of AI infrastructure using Nvidia's DSX architecture.
- Nvidia received a five-year option to purchase up to 30 million IREN shares at $70 per share, representing potential investment rights of $2.1 billion.
- IREN stock surged in after-hours trading, but the buzz cooled after IREN shared its earnings miss afterwards.
Nvidia and Bitcoin mining firm turned AI compute provider IREN Limited announced a deal late Thursday to deploy up to 5 gigawatts of next-generation AI infrastructure.
The partnership centers on deploying Nvidia's DSX architecture across IREN's global data center pipeline, with implementation beginning at the company's 2-gigawatt Sweetwater campus in Texas. As part of the agreement, Nvidia received a five-year option to purchase up to 30 million IREN shares at $70 per share.
The deal structure extends beyond equity rights. IREN will provide Nvidia with $3.4 billion in managed GPU cloud services over five years for the chipmaker's internal AI and research workloads.
"AI factories are becoming foundational infrastructure for the global economy," Nvidia founder and CEO Jensen Huang said. "Deploying these systems at scale requires deep integration across the full stack—compute, networking, software, power and operations. IREN brings the scale and infrastructure expertise to help accelerate the buildout of next-generation AI infrastructure globally."
IREN co-founder and co-CEO Daniel Roberts said in a statement that the partnership "combines Nvidia's AI systems and architecture leadership with IREN's expertise across power, land, data centers, GPU deployment, and infrastructure operations."
IREN is simultaneously expanding its infrastructure footprint to support the massive deployment. The company agreed to acquire Spain-based data center developer Ingenostrum (Nostrum Group), adding 490 megawatts of grid-connected power in Spain.
The European acquisition brings IREN's total power portfolio to 5 gigawatts—matching the scale of the planned Nvidia infrastructure deployment. The expanded capacity positions IREN to deliver on both its Nvidia partnership and existing commitments to other major tech companies.
IREN shares surged in after-hours trading Thursday, spiking above the $72 mark after closing at $56.85. The initial after-hours gains faded after IREN released its quarterly earnings report late Thursday, showing a substantial earnings miss in Q1 with a $247.8 million net loss.
Q&A
What is the value of the Nvidia and IREN Limited deal?
The deal is valued at $3.4 billion for cloud services and includes a $2.1 billion share option.
How many IREN shares can Nvidia purchase and at what price?
Nvidia has the option to purchase up to 30 million IREN shares at $70 per share.
Where will the AI infrastructure deployment take place?
The AI infrastructure will be deployed at IREN's 2-gigawatt Sweetwater campus in Texas.
What services will IREN provide to Nvidia under this deal?
IREN will provide Nvidia with $3.4 billion in managed GPU cloud services for its internal AI and research workloads.
