IREN Passes Crucial AI Test With Microsoft Deal
IREN has passed its biggest AI test yet as it delivered and formally accepted Horizon 1, the first of four data centers built for Microsoft. The validation comes after a five-day window where Microsoft tested the deployment against agreed standards, clearing the way for IREN to start sending monthly invoices.
Nvidia also tested the site running its GB300 systems and granted it Exemplar Cloud status, certifying that it meets Nvidia's performance and reliability bar. This is significant for a company that started as a Bitcoin miner, now shifting towards AI infrastructure.
The Microsoft deal alone accounts for $9.7 billion over five years and has already secured a $3.65 billion debt package backed by the contract, with almost all of it covering GPU spending tied to the agreement. IREN also holds a separate five-year $3.4 billion cloud deal with Nvidia.
The company's pivot from Bitcoin mining to AI infrastructure has been underway for months, and the recent developments have made its critics' narrative weaker. Analysts are divided on IREN stock, with Bernstein reiterating a 'Buy' rating and assigning a price target of $100, while Needham maintains a 'Hold' rating.