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Microsoft’s $9.7 billion deal with AI cloud provider IREN gives the company access to Nvidia chips and strengthens its global AI cloud infrastructure for the future.
A Landmark Deal in Microsoft’s AI Journey
Microsoft has once again taken a bold step in artificial intelligence. The tech giant recently entered a $9.7 billion cloud services partnership with IREN, an AI cloud provider from Australia. This long-term agreement will give Microsoft access to Nvidia’s advanced GPUs, a key resource for running and scaling powerful AI applications.
The five-year contract includes a 20 percent prepayment, underlining Microsoft’s confidence in IREN’s capabilities. This partnership is not just about hardware—it’s a move toward building the next generation of AI-driven cloud ecosystems.
How the IREN Partnership Boosts Microsoft’s AI Ambitions
The collaboration arrives at a crucial time. Microsoft’s quarterly revenue recently grew 18 percent to $77.7 billion, showing strong momentum in cloud computing and AI services. Yet behind these numbers lies a massive investment: the company spent $35 billion on infrastructure, with nearly half going to chips and data centers.
By working with IREN, Microsoft secures consistent access to Nvidia GPUs while leveraging IREN’s expertise in integrated AI cloud design and efficient power management. According to Jonathan Tinter, Microsoft’s President of Business Development and Ventures, the partnership “unlocks new growth opportunities for both companies and the customers we serve.”
Comparison: Microsoft’s Key AI Partnerships
| Partnership | Value | Primary Benefit | Year |
|---|---|---|---|
| IREN | $9.7 Billion | Access to Nvidia GPUs, AI infrastructure | 2025 |
| OpenAI | $135 Billion Stake | AI innovation and model integration | 2025 |
| Dell Technologies (via IREN) | $5.8 Billion | Supply of chips and hardware | 2025 |
This table highlights how Microsoft’s AI partnerships connect the full chain—from computing hardware to advanced software development.
IREN’s Expanding Role in AI Cloud Infrastructure
For IREN, the deal represents a global breakthrough. Alongside the Microsoft partnership, IREN signed a $5.8 billion contract with Dell Technologies to procure chips and related equipment. These resources will be deployed at its Childress, Texas campus throughout next year, further boosting the company’s infrastructure capacity.
IREN’s ability to build fully integrated AI data centers makes it an ideal partner as Microsoft races to meet the rising global demand for scalable AI cloud solutions.
Microsoft’s Vision for the New AI Cloud Era
The IREN agreement follows Microsoft’s renewed collaboration with OpenAI, in which it now holds a 27 percent stake in the for-profit arm of the company. With partnerships like these, Microsoft is shaping a complete AI ecosystem—combining innovation, hardware power, and global scale.
Together, these strategic investments show how Microsoft is preparing for a future where AI is embedded in every cloud service, business workflow, and digital experience. The IREN deal marks another major step toward that vision, opening the door to a new era of intelligent computing.