IREN signs $3.4B Blackwell GPU deal

IREN said on May 7 that it had signed a five-year AI cloud contract with Nvidia worth about $3.4 billion, adding a new revenue stream tied to managed Blackwell GPU capacity rather than its older bitcoin-mining business. The Australian-listed company disclosed the agreement in its quarterly results materials filed with the U.S. Securities and Exchange Commission. The same filing said Nvidia also received a five-year right to invest up to $2.1 billion in IREN shares, subject to conditions including regulatory approvals. The deal links a long-term customer commitment with an equity option that could help fund a broader data-center buildout. ### What exactly did IREN sign with Nvidia? IREN said the agreement is a five-year contract for managed GPU cloud services using air-cooled Blackwell systems. The company described the $3.4 billion figure as contract value and said the initial deployment would sit within 60 megawatts of existing data-center capacity at Childress, Texas. IREN said it is targeting a ramp from early 2027. (sec.gov) The SEC filing did not describe the arrangement as a simple hardware sale. IREN framed it as a managed service, meaning it would provide not only the physical infrastructure but also the operating environment needed to run the GPU clusters. In the same results presentation, IREN said its acquisition of Mirantis would support delivery of the Nvidia AI cloud contract through orchestration, engineering and customer-support capabilities. (sec.gov) ### How does the $2.1 billion option work? Nvidia received a five-year right to purchase up to 30 million IREN ordinary shares at an exercise price of $70 per share, IREN said in its May 7 filing. At that strike price, the warrant represents a potential investment of up to $2.1 billion. IREN said the right is subject to certain conditions, including regulatory approvals. (sec.gov) The structure resembles another Nvidia-backed infrastructure financing announced earlier this year. Nebius Group said in a March 11 Form 6-K that it had entered into a securities purchase agreement with Nvidia under which Nebius sold a pre-funded warrant for aggregate gross proceeds of about $2 billion. Nebius said it intended to use the proceeds to support AI cloud investments and greenfield data-center construction. (sec.gov) ### Where does this fit in IREN’s larger buildout? IREN said on March 4 that it had entered into purchase agreements for more than 50,000 Nvidia B300 GPUs, expanding its total fleet to 150,000 GPUs. The company said then that speed to available compute had become increasingly important in the AI cloud market. (sec.gov) In its May 7 investor materials, IREN said its 2026 expansion to 480 megawatts was on track, with Horizon 1 through 4 expected to be delivered by year-end. The company also said it had $3.1 billion in annualized recurring revenue under contract and was targeting $3.7 billion exiting calendar 2026. Beyond that, IREN said 2027 expansion to 1,210 megawatts was already in build and that additional capacity in Texas, Spain and Australia was under development across a 5-gigawatt secured-power pipeline. (sec.gov) ### Is this IREN’s first large AI infrastructure contract? IREN disclosed another major customer agreement on November 2, 2025, when a company subsidiary signed a five-year average-term deal to provide Microsoft with dedicated GPU infrastructure capacity at Childress, Texas. That filing put the total contract value at about $9.7 billion through 2031 and said Microsoft would receive the services in several tranches targeted for deployment during 2026. (sec.gov) The Nvidia agreement is smaller than the Microsoft contract by headline value, but it broadens IREN’s customer roster and adds a strategic partnership element through the share purchase right. IREN said on May 7 that the Nvidia contract was “the first step in a broader strategic partnership,” according to remarks included in its earnings materials. (sec.gov) ### What comes next? IREN said the first Nvidia-related deployment is targeted to ramp from early 2027 at Childress, Texas, using 60 megawatts of existing data-center capacity. The company also said Horizon 1 through 4 remain on track for delivery by the end of 2026, while Nvidia’s right to buy up to 30 million shares remains exercisable for five years, subject to the stated conditions. (sec.gov 1) (sec.gov 2)