IREN Secures Key Milestone as Microsoft Accepts First AI Data Center

IREN has made significant strides in its pivot from Bitcoin mining to AI infrastructure, with Microsoft's acceptance of its first AI data center being a major milestone. The deal is part of a $9.7 billion agreement and marks the beginning of IREN's contract with Microsoft, which is expected to generate around $1.94 billion in annualized revenue once all four Horizons are running.

The transition has not been without its challenges, however. Famed short-seller Jim Chanos has questioned the economics of the deal, stating that it is a 'financing deal with IREN taking all the risk.'

Despite these concerns, IREN's management remains optimistic about the company's prospects in AI Cloud. They are targeting over $4 billion in annualized run-rate revenue by year-end, with around 85% already under contract.