Nvidia will invest up to $2.1 billion in data center operator IREN, part of a broader deal to deploy as much as 5 gigawatts of AI infrastructure. The partnership, announced Thursday, underscores the escalating demand for computing power as Big Tech and frontier model developers pour billions into AI capacity.
Shares of IREN surged roughly 9% in after-hours trading, closing the regular session at $56.85. Under the agreement, Nvidia receives a five-year warrant to purchase up to 30 million IREN shares at $70 each.
The collaboration aims to accelerate the build-out of large-scale AI factories by combining Nvidia's architecture with IREN's operational expertise. Future deployments will focus primarily on IREN's 2-gigawatt Sweetwater campus in Texas.
IREN, known as a "neocloud" provider, sells cloud services built on Nvidia processors, giving Big Tech firms access to computing power without constructing their own data centers. Last year, the company signed a $9.7 billion cloud deal with Microsoft.
This deal comes as the four largest U.S. tech giants signaled this week that AI spending will not slow, with combined capital expenditures projected to exceed $700 billion in 2025.