NVIDIA Signs $3.4 Billion AI Cloud Deal with IREN, Including Option to Buy $2.1 Billion in Shares

NVIDIA Corp. and IREN Ltd. said May 7 they have signed a five-year AI cloud services contract worth about $3.4 billion, adding an unusual equity component that could deepen the chipmaker’s ties to the data center operator. IREN also granted NVIDIA a five-year right to buy up to 30 million ordinary shares at $70 each, a potential $2.1 billion investment if exercised and if conditions, including regulatory approvals, are met.

The deal is notable because it goes beyond a standard supplier-customer arrangement. NVIDIA is committing to buy cloud services from IREN while also securing the option to take an equity stake in the company, linking itself both commercially and financially to IREN’s AI infrastructure expansion. Investors welcomed the announcement, with IREN shares rising materially in extended trading after the news.

Operationally, IREN said the contract will be serviced by air-cooled Blackwell platform systems, referring to NVIDIA’s latest AI computing architecture, deployed within roughly 60 megawatts of capacity at IREN’s Childress, Texas, campus. Ramp-up is targeted from early 2027. NVIDIA said the companies also intend over time to support deployment of up to 5 gigawatts of NVIDIA DSX-aligned AI infrastructure across IREN’s global data center pipeline. Future projects are expected to focus on IREN’s 2-gigawatt Sweetwater campus in Texas, which the companies said is likely to serve as a flagship site for NVIDIA’s DSX architecture.

The partnership underscores how far IREN has moved from its origins as a bitcoin-mining infrastructure company. The publicly listed company has been repositioning itself as an operator of high-power data centers and GPU clusters for AI cloud and high-performance computing, or HPC, workloads. The NVIDIA agreement builds on that strategy rather than marking a first step. In November 2025, IREN announced a separate multi-year GPU services contract with Microsoft with a stated total contract value of about $9.7 billion through 2031, alongside a Dell GPU supply agreement valued at about $5.8 billion.

IREN’s financial update, released the same day, offered context for the scale of that buildout. The company reported third-quarter fiscal 2026 revenue of $144.8 million, a net loss of $247.8 million and adjusted EBITDA of $59.5 million. It also said it had $2.6 billion of cash on hand as of April 30, 2026. IREN said it now has $3.1 billion in annual recurring revenue under contract and is targeting $3.7 billion of ARR by the end of calendar 2026.

NVIDIA framed the agreement as part of a broader push to build large-scale AI infrastructure, often described as “AI factories,” that combine computing chips, networking, software and power systems. “AI factories are becoming foundational infrastructure for the global economy. Deploying these systems at scale requires deep integration across the full stack — compute, networking, software, power and operations,” Jensen Huang, NVIDIA’s founder and CEO, said in the company’s press release. “IREN brings the scale and infrastructure expertise to help accelerate the buildout of next-generation AI infrastructure. Together, we are building for the age of AI.”

For IREN, the agreement is also a statement about the kind of business it wants to become. “This contract demonstrates our ability to deliver fully managed cloud solutions, not just bare metal, to a broad and growing customer base,” Daniel Roberts, IREN’s co-founder and co-CEO, said in the company’s release.