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Airen Shares soared in after-hours trading Thursday before giving back nearly all of their gains after the data center operator announced a partnership with the semiconductor giant. Nvidia.
Nvidia and IREN will deploy up to 5 gigawatts of the chipmaker’s DSX-branded infrastructure design, aimed at powering artificial intelligence workloads across the Australian company’s data center facilities around the world.
When this news spread, IREN stock rose to about 27%, but then fell back and settled at about 6%.
The data center operator will issue NVIDIA a five-year right to purchase up to 30 million common shares at an exercise price of $70 per share, the company said in an announcement. Nvidia will have the right to invest $2.1 billion in the company through this deal.
“AI factories are becoming fundamental infrastructure for the global economy,” Nvidia CEO Jensen Huang said in a statement. “Deploying these systems at scale requires tight integration across the full stack, including compute, networking, software, power, and operations.”
Nvidia has strengthened its stack with similar deals involving multi-billion dollar purchase agreements with companies such as: reasonable, lumen And earlier this week, corning.
IREN said in a separate release that it has signed a five-year deal worth $3.4 billion to Nvidia to provide access to managed GPU cloud services “for internal AI and research workloads.” The deployment will take place at IREN’s existing data center in Childress, Texas.
IREN’s daily stock price chart.
