Just over a year ago, investors largely viewed IREN (IREN) as a bitcoin mining company. Today, the company supplies AI infrastructure to Microsoft (MSFT) and signs billion-dollar contracts with some of the biggest names in the AI market, including Nvidia (NVDA) and Dell Technologies (DELL). These developments provide evidence that IREN's shift toward AI infrastructure is translating into actual business activity, and the market has responded strongly to that progress.
IREN shares have been rewarded with two strong moves over the last two months. IREN's AI transformation centers on a major five-year agreement with Microsoft. The company entered into a $9.7 billion cloud services agreement with Microsoft, with 20% of the contract value paid upfront.
Once fully commissioned, the deal is expected to generate nearly $1.94 billion in annualized run-rate revenue. That gives IREN a significant source of contracted business as it builds out its AI cloud operations. Here's Another Little-Known Firm Jensen Huang's Nvidia Is Quietly Backing MediaTek Is Stepping Up Competition Against Qualcomm With a New 2-Nanometer Chip.
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The key point is that the agreement is already translating into real infrastructure. The company has completed and delivered the first of four planned "Horizon" AI cloud deployments for Microsoft. The deployment is a 50-megawatt liquid-cooled installation at IREN's Childress, Texas campus.
Nvidia has also granted IREN Exemplar Cloud status after testing the deployment's GB300 NVL72 setup. That validation is important because it shows Nvidia has tested IREN's infrastructure and confirmed its ability to support demanding AI workloads. IREN's planned capacity expansion shows just how quickly its business is changing, growing from roughly 3 megawatts of AI cloud capacity a year ago to 480 megawatts being delivered in 2026.
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