But the sharp selloff appears to have largely run its course. More importantly, the fundamental catalyst that can propel IREN's stock significantly higher remains firmly intact: the transformative $9.7 billion, five-year AI cloud contract with Microsoft ( NASDAQ:MSFT ) announced earlier this month. It validates IREN's strategy, secures massive upfront cash, and positions the company as a go-to provider in a market starving for immediately available, renewable energy-powered compute.
This announcement comes just hours after Microsoft announced a $9.7 billion deal for AI cloud capacity with IREN, an Australian data center business. Earlier today, OpenAI announced that it had struck a $38 billion cloud computing deal with Amazon to buy cloud services over the next seven years. The AI company also allegedly inked a $300 billion deal with Oracle for cloud compute in September too.
OpenAI has signed a new deal valued at $38bn with Amazon that will allow the artificial intelligence giant to run AI workloads across Amazon Web Services (AWS) cloud infrastructure. The seven-year deal announced on Monday is the first big AI push for the e-commerce giant after a restructuring last week. list of 4 itemsend of list The new deal will give the ChatGPT maker access to thousands of Nvidia graphics processors to train and run its artificial intelligence models.
Microsoft has entered into a $9.7 billion cloud services contract with artificial intelligence cloud service provider IREN that will give it access to some of Nvidia's chips. Microsoft spent nearly $35 billion in the July-September quarter on capital expenditures to support AI and cloud demand, nearly half of that on computer chips and much of the rest related to data center real estate.
