(RTTNews) - IREN Ltd. (IREN), an AI Cloud Service provider, Monday announced that it has signed a multi-year GPU cloud services contract with Microsoft for $9.7 billion.
The Stock is trading up around 22% in the premarket.
As per the agreement terms, IREN will provide Microsoft access to NVIDIA GB300 GPUs over 5 years, including a 20 percent prepayment.
Further, it has entered into an agreement with Dell Technologies to purchase GPUs and ancillary equipment for approximately $5.8 billion.
The GPUs are to be deployed in 2026 through phases at IREN's campus in Texas.
The company expects to fund the capital expenditures of these contracts through a combination of existing cash, customer prepayments, operating cashflows and additional financing initiatives.
"It marks another major step forward for IREN as we continue to expand large-scale GPU deployments across our 3GW secured power portfolio in North America, reinforcing our position as a leading AI Cloud Service Provider.", commented Daniel Roberts, Co-Founder & Co-CEO of IREN.
In pre-market activity IREN shares are trading at $74.15 up, by 22.06% on the Nasdaq.
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