IREN shares jumps on $1.6 billion Dell deal to expand AI cloud business
The Dell agreement will support IREN’s expanding AI cloud business and boost projected annualized revenue to $4.4 billion by 2027.
What to know:
- The company signed a $1.6bn purchase agreement with Dell for air-cooled Blackwell systems to support its long-term AI cloud services contract.
- The systems will be deployed at IREN’s Childress, Texas facilities, strengthening its ability to meet growing demand for AI compute capacity.
- Upon commissioning, the AI cloud contract is expected to increase IREN’s annualized run-rate revenue from $3.7bn to $4.4bn.
Once operational, the AI cloud contract is projected to increase IREN’s annualized run-rate revenue from $3.7 billion to $4.4 billion, reinforcing the company’s position as a growing player in AI infrastructure and cloud services.
Co-founder Daniel Roberts said speed and execution remain critical in the rapidly expanding AI market.
“Securing capacity and accelerating commissioning are our top priorities in a market where time-to-compute is everything,” Roberts said. “Our relationship with Dell ensures access to hardware at the scale and speed the market demands.”
The agreement highlights increasing demand for AI compute capacity as hyperscalers, enterprises, and developers race to secure infrastructure for next-generation AI workloads.
Read More: IREN co-founder says AI’s biggest bottleneck is infrastructure, not chips
