Microsoft is doubling down on its artificial intelligence (AI) infrastructure strategy with another multibillion-dollar investment. The tech giant has inked a $9.7 billion cloud services deal with Iren (NASDAQ: IREN), marking its latest move to secure the computing power required to dominate the fast-growing AI landscape.
This deal positions Iren, a former Bitcoin mining company turned AI infrastructure provider at the center of one of the most lucrative emerging markets in tech; AI data centers and GPU-powered cloud computing.
Microsoft Accelerates AI Infrastructure Investments
Over the last several years, Microsoft has invested tens of billions of dollars to scale its AI infrastructure and cloud services through its Azure platform. From strategic funding in OpenAI to extensive data center expansion, the company has been racing to stay ahead in the AI arms race.
In September 2025, Microsoft signed a $17.4 billion deal with Nebius Group. Now, just weeks later, the company has expanded its reach with a $9.7 billion agreement with Iren, one of the rising names in AI infrastructure-as-a-service (IaaS).
According to Microsoft’s recent 8-K filing, the five-year contract will begin in 2026 and extend through 2031, providing the company access to Nvidia GB300 GPUs, the high-performance chips essential for AI model training and large-scale computation.
What Is Iren and Why It Matters in the AI Era
Iren originally entered the technology world through cryptocurrency mining, building vast data centers equipped with advanced hardware to mine Bitcoin efficiently. However, as the demand for AI computing power exploded, the company saw an opportunity to pivot its infrastructure toward AI-driven workloads.
Now operating as a neocloud service provider, Iren rents GPU capacity to companies that need massive computational resources but prefer not to invest in building their own data centers. This business model known as GPU cloud leasing has become a cornerstone of the AI economy in 2025.
Alongside established names like CoreWeave, Oracle, and Nebius, Iren has rapidly emerged as a key player in the global AI infrastructure race.
Neoclouds: The Backbone of the AI Revolution
The term neocloud refers to specialized infrastructure platforms that allow businesses to access GPU power through cloud services. These platforms bridge a crucial gap in the AI value chain, helping companies from startups to hyperscalers train and deploy advanced AI models at scale.
With the global AI infrastructure market expected to surpass several trillion dollars over the next five years, neoclouds like Iren are set to play a defining role in powering next-generation AI innovations.
Microsoft’s continued partnerships highlight a strategic pattern, rather than relying solely on internal data centers, the company is forging long-term alliances with third-party GPU providers to ensure consistent access to compute resources.
Iren’s Market Growth and Financial Outlook
Iren’s stock has been one of 2025’s biggest success stories, surging nearly 600% year-to-date. While such growth signals strong investor enthusiasm, it also reflects broader market excitement around AI infrastructure.
Despite generating around $500 million in annual revenue, Iren’s market capitalization now stands near $18 billion. With the new Microsoft deal adding roughly $2.4 billion in projected annual revenue over the next five years, analysts believe the company could grow into its valuation especially as global demand for GPU-based cloud services accelerates.
However, investors are also advised to stay cautious. Much of Iren’s current valuation is tied to AI sector momentum rather than proven profitability, meaning long-term success will depend on execution and sustained demand.
The Bigger Picture: Investing at the Intersection of AI and Infrastructure
Microsoft’s $9.7 billion agreement with Iren reinforces a major trend in technology, AI dominance requires infrastructure dominance. As AI models become larger and more complex, the need for scalable GPU power will continue to rise, creating enormous opportunities for companies that can deliver it efficiently.
For investors and industry watchers alike, this partnership signals how AI infrastructure is becoming the new oil of the digital economy, a resource every major tech company is competing to control.
With Microsoft betting heavily on Iren and other neocloud providers, the next phase of the AI revolution will likely be defined by who can build and rent the most powerful computing infrastructure on Earth.
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