Nvidia Corp. and IREN Limited signed a five-year AI infrastructure agreement valued at $3.4 billion [2].
The deal signals a strategic shift for IREN as it moves from Bitcoin mining toward AI-focused cloud services. It also allows Nvidia to rapidly scale its physical infrastructure by leveraging existing data-center capabilities in the U.S.
As part of the arrangement, Nvidia took warrants that could convert into a stake worth up to $2.1 billion [1, 3]. These warrants provide the option to purchase up to 30 million IREN shares at a price of $70 per share [3, 4].
The partnership focuses on deploying approximately five GW of AI compute capacity [1, 3]. This infrastructure will be located at IREN’s data-center facility in Sweetwater, Texas [3].
Market reaction to the announcement was immediate. IREN shares rose eight percent during premarket trading [6], while some reports indicated the stock surged 27 percent during intraday trading [7].
Nvidia seeks to expand its AI infrastructure capacity through this partnership, while IREN utilizes the investment to pivot its business model [2, 5]. The agreement ties the financial investment directly to the expansion of high-performance computing power needed for artificial intelligence workloads.
“Nvidia took warrants that could convert into a stake worth up to $2.1 billion in IREN”
This deal highlights a growing trend of cryptocurrency mining firms repurposing their massive power grids and cooling infrastructure for AI workloads. By securing warrants rather than a direct purchase, Nvidia creates a performance-linked incentive for IREN to successfully scale its Texas facility, while simultaneously locking in the physical capacity required to meet the global demand for AI compute.
