Wedoany.com Report-Nov. 4, Microsoft has signed a $9.7 billion agreement with data-center operator IREN to secure access to Nvidia’s latest processors, aiming to ease the computing shortage that has constrained its ability to fully leverage the artificial intelligence expansion. The five-year deal highlights the increasing demand for computing power across the AI industry as major technology firms work to meet the needs of advanced applications such as ChatGPT.

A view shows the Microsoft logo in Hanover, Germany, March 31, 2025.

News of the partnership pushed IREN’s shares up as much as 24.7% to a record high on Monday before closing nearly 10% higher. Shares of AI-server manufacturer Dell rose about 1%, as it will provide IREN with Nvidia’s GB300 chips and related infrastructure under a $5.8 billion arrangement with Microsoft.

By teaming up with IREN, Microsoft aims to expand its AI computing capacity without having to build additional data centers or secure more energy supply, both of which have been key challenges in meeting the surge in AI-related demand. The partnership will also allow Microsoft to avoid significant capital investment in hardware that may rapidly depreciate as newer and more powerful processors enter the market.

The collaboration follows recent earnings reports from major U.S. technology companies, which revealed that limited computing capacity has constrained their ability to fully benefit from the AI-driven growth. It also reflects Microsoft’s broader strategy of partnering with specialized cloud and infrastructure providers to scale efficiently.

IREN, which had a market capitalization of about $16.5 billion as of its last close after its shares surged more than six times this year, operates several data centers across North America with a total capacity of approximately 2,910 megawatts. The company said Nvidia processors will be deployed in phases through 2026 at its 750-megawatt Childress, Texas, campus, where new liquid-cooled data centers are being built to deliver around 200 megawatts of critical IT capacity.

IREN confirmed that funds from Microsoft’s prepayment will help finance part of its $5.8 billion Dell equipment deal. However, the agreement could be terminated if IREN fails to meet delivery schedules.

The partnership also places Microsoft among a growing list of technology firms turning to so-called “neocloud” companies such as CoreWeave and Nebius Group, which provide high-performance computing services built on Nvidia chips. Microsoft previously signed a $17.4 billion deal with Nebius for infrastructure capacity, underscoring the intensifying race for AI computing power.

Separately on Monday, AI cloud startup Lambda announced a multibillion-dollar agreement with Microsoft to deploy infrastructure using Nvidia technology, while OpenAI recently secured a seven-year, $38 billion cloud services deal with Amazon.

Industry analysts say these large-scale partnerships demonstrate how demand for high-performance computing continues to accelerate as companies pursue advanced AI systems. The Microsoft-IREN deal further strengthens the tech giant’s position in the competitive AI infrastructure market and reflects ongoing efforts to expand capacity efficiently while maintaining flexibility in future technology upgrades.