Microsoft Inks $9.7B Deal with IREN to Access NVIDIA's Advanced GB300 AI Chips

Microsoft has signed a massive $9.7 billion deal with data center operator IREN (via Bloomberg). The latest deal gives Microsoft access to NVIDIA’s cutting-edge GB300 chips, expanding its AI capacity without needing to build new data centers or secure more power.

For Microsoft, this five-year agreement is more than just an investment. By tapping IREN’s vast data center network across North America, Microsoft gets access to nearly 3,000 megawatts of total capacity, allowing it to scale faster and smarter. Rather than pouring billions into building its own facilities, it’s relying on partners with ready infrastructure to meet growing demand from services like Copilot and ChatGPT.

Microsoft is also following the ongoing trend across the AI industry. AI giants have increasingly turning to “neocloud” players in the recent past. Microsoft also recently signed a $17.4 billion deal with Nebius Group for similar capacity, showing just how competitive the AI infrastructure race has become.

As part of the deal, IREN plans to deploy the new NVIDIA processors in phases through 2026, starting with its 750-megawatt Childress, Texas campus. That site alone will feature new liquid-cooled data centers capable of delivering 200 megawatts of critical IT power. Funds from Microsoft’s prepayment will help finance IREN’s $5.8 billion deal with Dell, though the contract could be canceled if delivery milestones aren’t met.

Speaking of deals, AI cloud startup Lambda also confirmed a multibillion-dollar agreement with the tech giant on Monday to deploy NVIDIA-backed AI infrastructure. All in all, Microsoft pouring in billions shows its commitment to stay ahead in the AI compute race, which doesn’t seem to have a finish line just yet.