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Microsoft has signed a $9.7 billion deal with AI cloud provider IREN to secure Nvidia GPUs, expanding its cloud and AI capabilities amid rising global demand.
Microsoft’s New $9.7 Billion Push Toward AI Dominance
Microsoft has made another strong move to strengthen its artificial intelligence leadership. The company announced a $9.7 billion cloud services contract with IREN, an AI cloud provider based in Australia. The deal will give Microsoft access to Nvidia’s powerful GPU chips, which are essential for training and running advanced AI systems.
This five-year agreement, including a 20 percent prepayment, highlights Microsoft’s growing commitment to expanding its cloud computing capacity. As global demand for AI tools surges, Microsoft is investing heavily to stay ahead of its rivals.
A Strategic Deal for the Future of AI Computing
Microsoft’s latest partnership comes at a time when its AI business is growing rapidly. The company recently reported 18 percent quarterly revenue growth, reaching $77.7 billion in sales. However, it also revealed its massive investments—around $35 billion in capital spending for the July-to-September quarter, nearly half of it dedicated to computer chips and new data centers.
Through IREN, Microsoft will gain direct access to Nvidia GPUs while benefiting from IREN’s experience in building full-stack AI cloud environments. Jonathan Tinter, Microsoft’s President of Business Development and Ventures, said the partnership “unlocks new growth opportunities for both companies and the customers we serve.”
Microsoft’s Expanding Network of AI Partnerships
| Partnership | Value | Key Objective | Year |
|---|---|---|---|
| IREN | $9.7 Billion | Secure Nvidia GPUs and expand AI infrastructure | 2025 |
| OpenAI | $135 Billion Stake | Accelerate AI model innovation | 2025 |
| Dell Technologies (via IREN) | $5.8 Billion | Supply chips and equipment for data centers | 2025 |
This table shows how Microsoft is building a complete AI ecosystem—combining hardware access, data infrastructure, and AI model development.
How IREN Strengthens Microsoft’s Cloud Ecosystem
IREN is quickly becoming a major player in the AI cloud space. Alongside the Microsoft deal, IREN has entered a $5.8 billion agreement with Dell Technologies to buy chips and equipment for its Childress, Texas campus. These upgrades will be rolled out in phases through 2026, increasing its GPU capacity.
For Microsoft, this means faster and more reliable access to Nvidia’s high-performance chips, which are crucial for expanding Azure AI services and improving cloud efficiency for enterprise customers.
OpenAI, IREN, and Microsoft: A Powerful Trio
Last week, Microsoft also renewed its partnership with OpenAI, giving it a 27 percent stake in OpenAI’s for-profit division. The combined value of these deals positions Microsoft at the center of the global AI race, reaching a $4 trillion market valuation for the second time this year.
By integrating OpenAI’s advanced models with IREN’s hardware and infrastructure capabilities, Microsoft is creating a complete AI supply chain—from data centers to deployment.
The Bigger Picture
The Microsoft-IREN deal signals a major shift in how cloud companies are preparing for the AI era. With growing competition from Google Cloud and Amazon Web Services, Microsoft’s decision to secure GPU access ensures it can continue to deliver faster, smarter, and more scalable AI tools to customers worldwide.
This $9.7 billion investment isn’t just about chips—it’s about owning the future of AI computing.
