IREN shares lift after securing $4.7b AI cloud contract from Nvidia
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The news: IREN shares lifted after signing a USD3.4 billion ($4.7 billion) deal to provide AI cloud services to Nvidia over a five-year period. A separate Nvidia partnership grants the chipmaker a five-year right to buy USD2.1 billion worth of IREN shares.
Meanwhile, the company posted a third quarter net loss of USD247.8 million amid non-cash impairments and revenue decline related to the transition away from bitcoin mining.
The numbers: At 9:28am AEST, IREN shares had lifted 5% in after market trade.
The company’s contracted annual recurring revenue was USD3.1 billion.
The net loss posted in Q3 was greater than the USD155.4 million net loss posted in the preceding quarter. Total revenue fell from USD184.7 million in Q2 to USD144.8 million while adjusted EBITDA fell from USD75.3 million to USD59.5 million.
The context: The AI cloud contract provides Nvidia with access to air-cooled Blackwell GPUs being deployed within 60 megawatts of existing data centre capacity at its campus in Childress, Texas. Ramp up is targeted for early 2027.
IREN also said it has signed a strategic partnership with Nvidia to support the deployment of “infrastructure and architecture” aligned with the chipmaker’s technology across the neocloud’s five gigawatt pipeline of data centre projects.
What they said: “This quarter reflected strong execution against that opportunity. We energized the Sweetwater 1 substation on schedule, advanced the Horizon 1-4 liquid-cooled data centers at Childress in support of our $9.7bn contract with Microsoft, and continued transitioning existing data centers from ASICs to GPUs for higher-value AI Cloud workloads,” said IREN co-founder and co-CEO Daniel Roberts.
“The acquisitions of Nostrum and Mirantis will strengthen our platform, adding European sites and teams, together with software, orchestration and support capabilities that will broaden customer access over time as we scale across our global 5GW secured power portfolio,” he said.
The source: IREN financial result
