IREN's AI Cloud Contracts Worth $2.8B Send Shares Soaring
IREN Ltd., a neocloud company, announced that it signed $2.8 billion in new multiyear cloud service contracts with multiple leading artificial intelligence developers and raised its year-end annualized run-rate revenue target for its AI cloud business to $4 billion.
The company's shares rallied 20% in the session after announcing a significant expansion of its customer base, including major players such as Microsoft and Nvidia. IREN's vertically integrated AI Cloud platform is scaling at pace, with CEO Daniel Roberts stating that 'we have expanded from approximately 3MW of self-built AI Cloud capacity to 480MW being delivered this year, with 1.2GW targeted for 2027.'
Goldman Sachs praised IREN's customer diversification efforts, saying the announcement reinforces tight supply and favorable pricing conditions. The firm updated its estimates for IREN to reflect lower Bitcoin mining costs as the company winds down its operations.