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Microsoft's $9.7B Deal Boosts AI Capacity with Nvidia Chips

11/3/2025

24 2 Full Breakdown

Summary

Story summary

Microsoft Corp. signed a $9.7 billion, five-year deal with Australian IREN Ltd., granting access to Nvidia's advanced chips and including a 20% prepayment to expand AI computing capacity.
IREN Ltd. will buy about $5.8 billion of GPUs and related equipment from Dell Technologies as part of the agreement.
Deployment will occur in phases at IREN's Childress, Texas facility through 2026 to meet rising AI demand.

History

Historical Context

In 2011, Nvidia launched its CUDA platform, revolutionizing parallel computing and paving the way for modern AI applications. By 2023, Microsoft signed a $9.7 billion deal with IREN Ltd. to enhance AI computing capacity, including a $5.8 billion GPU purchase from Dell Technologies, reflecting the soaring demand for AI technology and solidifying Nvidia's dominance in the market.

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Story summary

Microsoft Corp. signed a $9.7 billion, five-year deal with Australian IREN Ltd., granting access to Nvidia's advanced chips and including a 20% prepayment to expand AI computing capacity.
IREN Ltd. will buy about $5.8 billion of GPUs and related equipment from Dell Technologies as part of the agreement.
Deployment will occur in phases at IREN's Childress, Texas facility through 2026 to meet rising AI demand.

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