Bitcoin Miner IREN Secures $3.4 Billion Nvidia AI Deal, With $2.1 Billion Share Option

Nvidia and Bitcoin mining firm turned AI compute provider IREN Limited announced a deal late Thursday to deploy up to 5 gigawatts of next-generation AI infrastructure.

The partnership centers on deploying Nvidia's DSX architecture across IREN's global data center pipeline, with implementation beginning at the company's 2-gigawatt Sweetwater campus in Texas. As part of the agreement, Nvidia received a five-year option to purchase up to 30 million IREN shares at $70 per share.

The deal structure extends beyond equity rights. IREN will provide Nvidia with $3.4 billion in managed GPU cloud services over five years for the chipmaker's internal AI and research workloads.

"AI factories are becoming foundational infrastructure for the global economy," Nvidia founder and CEO Jensen Huang said. "Deploying these systems at scale requires deep integration across the full stack—compute, networking, software, power and operations. IREN brings the scale and infrastructure expertise to help accelerate the buildout of next-generation AI infrastructure globally."

IREN co-founder and co-CEO Daniel Roberts said in a statement that the partnership "combines Nvidia's AI systems and architecture leadership with IREN's expertise across power, land, data centers, GPU deployment, and infrastructure operations."

IREN is simultaneously expanding its infrastructure footprint to support the massive deployment. The company agreed to acquire Spain-based data center developer Ingenostrum (Nostrum Group), adding 490 megawatts of grid-connected power in Spain.

The European acquisition brings IREN's total power portfolio to 5 gigawatts—matching the scale of the planned Nvidia infrastructure deployment. The expanded capacity positions IREN to deliver on both its Nvidia partnership and existing commitments to other major tech companies.

IREN shares surged in after-hours trading Thursday, spiking above the $72 mark after closing at $56.85. The initial after-hours gains faded after IREN released its quarterly earnings report late Thursday, showing a substantial earnings miss in Q1 with a $247.8 million net loss.

IREN is currently up about 3% on the day at a recent price of $58.60. Analysts at investment bank Bernstein put a $100 price target on IREN shares following the announcements.

Nvidia stock continues to hover near an all-time high, recently trading above $215 per share. NVDA shares have jumped by 83% over the last year, per Yahoo Finance.

IREN's deal with Nvidia follows the company's November 2025 agreement with Microsoft for $9.7 billion in GPU cloud infrastructure powered by Nvidia GB300 GPUs at its Childress, Texas data center. That deal included a $5.8 billion purchase agreement with Dell Technologies for computing equipment.

The scale of these deals underscores how AI infrastructure providers are becoming critical intermediaries between chip manufacturers and enterprise customers seeking dedicated compute capacity. With commitments now exceeding $15 billion across Nvidia and Microsoft partnerships, IREN has emerged as a major player in AI infrastructure deployment.

The Nvidia-IREN deal reflects intensifying competition for AI compute infrastructure. Hut 8 recently signed a $9.8 billion AI data center lease, pushing its stock price to all-time highs, while firms like Core Scientific and Terawulf have similarly signed multi-billion-dollar compute deals with AI giants.