### Microsoft Secures Major AI Cloud Deal with IREN to Enhance Computing Power In a significant move to bolster its artificial intelligence (AI) capabilities, Microsoft has signed a **$9.7 billion** contract with IREN, an AI cloud compute company. This five-year agreement will provide Microsoft with access to Nvidia's advanced GB300 graphics processing units (GPUs), which are essential for enhancing Azure's cloud computing power. The deal is part of Microsoft's strategy to address the increasing demand for AI services and to expand its infrastructure, particularly in Texas, where it plans to enhance its data center operations. The announcement has positively impacted IREN's stock, which surged by over **20%** following the news, reflecting investor confidence in the partnership's potential [https://www.dqindia.com/news/microsoft-signs-usd-97-billion-deal-with-iren-to-secure-ai-compute-power-10621278][https://finance.yahoo.com/news/microsoft-signs-9-7-billion-110844856.html]. ### Breakdown of the Microsoft-IREN Deal 1. **Contract Overview**: - Microsoft has entered a **five-year** contract valued at **$9.7 billion** with IREN. - The deal focuses on securing access to Nvidia's GB300 GPUs, which are critical for AI applications [https://bitcoinethereumnews.com/bitcoin/bitcoin-miners-iren-cipher-rise-after-multi-billion-dollar-microsoft-amazon-deals]. 2. **Strategic Importance**: - This partnership aims to alleviate the computing power shortage that has hindered Microsoft's ability to fully capitalize on the AI boom [https://www.channelnewsasia.com/business/microsoft-signs-97-billion-cloud-deal-iren-ai-demand-swells-5442236]. - The deal is expected to generate approximately **$1.94 billion** annually for IREN, significantly boosting its revenue [https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/microsoft-signs-us9-7-billion-ai-cloud-deal-australias-iren-secure-nvidia-systems]. 3. **Market Impact**: - Following the announcement, IREN's stock price increased by **25%**, indicating strong market confidence in the deal's potential benefits [https://cceonlinenews.com/stock-watch/iren-surges-after-9-7-billion-microsoft-cloud-contract-2]. - Other companies involved in the supply chain, such as Dell, also saw stock increases, reflecting the broader positive sentiment in the tech sector [https://finance.yahoo.com/news/microsoft-signs-9-7-billion-110844856.html]. ### Supporting Data and Market Reactions - **Stock Performance**: - IREN's stock rose by **24.7%** in premarket trading after the deal was announced, showcasing investor optimism [https://www.channelnewsasia.com/business/microsoft-signs-97-billion-cloud-deal-iren-ai-demand-swells-5442236]. - Dell's shares increased by **5%**, indicating a ripple effect across related companies [https://finance.yahoo.com/news/microsoft-signs-9-7-billion-110844856.html]. - **Financial Projections**: - The contract is projected to generate about **$1.94 billion** annually for IREN, highlighting the financial significance of the partnership [https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/microsoft-signs-us9-7-billion-ai-cloud-deal-australias-iren-secure-nvidia-systems]. ### Conclusion: A Strategic Move for Microsoft and IREN In summary, Microsoft's **$9.7 billion** deal with IREN marks a pivotal step in enhancing its AI cloud capabilities. The partnership is expected to significantly increase Microsoft's access to essential computing resources, thereby positioning it to better meet the surging demand for AI services. 1. **Major Deal**: Microsoft secures a transformative contract with IREN for AI cloud services. 2. **Financial Impact**: The deal is projected to generate substantial annual revenue for IREN and boost stock prices. 3. **Market Confidence**: The positive market reaction underscores the strategic importance of this partnership in the tech landscape. This collaboration not only strengthens Microsoft's infrastructure but also reflects the growing trend of tech companies investing heavily in AI capabilities to stay competitive in an evolving market [https://www.afr.com/world/north-america/australia-s-iren-lands-14-8b-microsoft-deal-for-ai-cloud-services-20251103-p5n7hh?instance=2025-11-04-05-57-AEDT&jobid=31974176&list_name=5655EA70-F54A-4680-8E43-524D4E016C59&mbnr=MzI5NDE5NTM&promote_channel=edmail].