11:30 AM EST, 11/03/2025 (MT Newswires) -- Microsoft ( MSFT ) agreed to purchase artificial intelligence computing capacity from Australia's Iren ( IREN ) in a $9.7 billion deal that gives the American tech giant access to Nvidia's ( NVDA ) chips.

Microsoft ( MSFT ) will make a 20% prepayment for the five-year deal, including gaining access to Nvidia's ( NVDA ) GB300 graphic processing units, Microsoft ( MSFT ) and Iren ( IREN ) said in a joint statement on Monday.

The chips will be deployed at AI cloud service provider Iren's ( IREN ) campus in Childress, Texas, beginning in 2026.

"This agreement not only validates Iren's ( IREN ) position as a trusted provider of AI cloud services, but also opens access to a new customer segment among global hyperscalers," Iren Co-Chief Executive Daniel Roberts said.

Jonathan Tinter, president of business development and ventures at Microsoft ( MSFT ), said this collaboration unlocks "new growth opportunities" for both companies and their customers.

Iren ( IREN ) expects the project to represent $1.94 billion in annual recurring revenue, according to an investor presentation.

Iren ( IREN ) said it signed a separate $5.8 billion deal with computer maker Dell Techologies (DELL), which will supply GPUs and ancillary products and services, scheduled to be delivered from March 2026.

Shares of Iren ( IREN ) were up 10% intraday Monday, while Microsoft ( MSFT ) edged up 0.4%. Dell and Nvidia ( NVDA ) rose 1% and 2.7%, respectively.

Neither Dell nor Nvidia ( NVDA ) responded to MT Newswires' requests for comment.

The deals point to continued appetite for AI data center capacity, Wedbush Securities analyst Matt Bryson said in a report e-mailed to MT Newswires.

"While (Nvidia ( NVDA )) and Dell are the clear beneficiaries of this contract, we view the ongoing accelerated build-out of AI as positive for hardware (and particularly commodity hardware where demand is tracking ahead of supply), though we continue to wonder whether vendors away from the (cloud service providers) will be squeezed by supply shortages," Bryson wrote.

Separately, Microsoft ( MSFT ) committed to $15.2 billion in AI investments in the United Arab Emirates by 2029, including more than $7.3 billion it will have invested in the country from 2023 through the end of this year.

Price: 69.20, Change: +8.44, Percent Change: +13.90