Nvidia takes $2.1bn stake option in IREN as pair target 5GW AI infrastructure buildout

Under the terms of the agreement, IREN has issued Nvidia a five-year option to purchase up to 30 million ordinary shares at an exercise price of $70 per share, representing a potential equity stake of up to $2.1 billion subject to regulatory conditions.

Separately, IREN has signed a five-year, $3.4 billion contract to provide Nvidia with managed GPU cloud services for its internal AI and research workloads, with deployment at IREN’s existing facilities in Childress, Texas.

The broader partnership targets up to 5GW of Nvidia DSX-aligned AI infrastructure across IREN’s global data centre pipeline. Future deployments are expected to centre on IREN’s 2-gigawatt Sweetwater campus in Texas, which the companies said they expect to serve as a flagship site for Nvidia’s DSX factory architecture. The model combines Nvidia’s AI factory design with IREN’s capabilities across power procurement, land, data centre construction, GPU deployment and infrastructure operations.

Jensen Huang, CEO of Nvidia, said AI factories were “becoming foundational infrastructure for the global economy.”

IREN, listed on Nasdaq and formerly known as Iris Energy, began as a bitcoin mining operation before pivoting aggressively towards AI infrastructure, a transition it shares with rivals such as CoreWeave.

The company currently operates around 23,000 GPUs across data centres in the US and Canada and holds a secured power portfolio of 3 gigawatts in North America, underpinned by grid-connected land in renewable-rich regions.

The Nvidia deal is the latest in a rapid series of major contracts that have recast IREN’s position in the market. In November 2025 the company signed a $9.7 billion, five-year agreement with Microsoft to deliver GPU cloud infrastructure powered by Nvidia GB300 GPUs at its Childress campus, a deal accompanied by a $5.8 billion equipment purchase from Dell Technologies.

IREN’s co-CEO Daniel Roberts said at the time that the Microsoft contract was expected to account for only around 10% of the company’s total capacity, pointing to the scale of infrastructure IREN is building out.

The Nvidia partnership deepens that trajectory further, adding the chipmaker itself as both a prospective equity holder and a paying customer, an unusual structural alignment that ties Nvidia’s commercial interests directly to IREN’s operational success.

For Nvidia, which has faced scrutiny over its exposure to data centre spending cycles, taking a long-dated option rather than an outright stake limits near-term balance sheet commitment while securing preferential access to a rapidly expanding infrastructure platform.

Meta and Nvidia strike multi-billion-dollar deal