How IREN Is Harnessing NVIDIA Partnership to Power a $500 Million AI Cloud Venture

This October, IREN, a company traditionally known for its prowess in Bitcoin mining, unveiled a strategic pivot that has positioned it as a significant player in the AI cloud computing space. With a recent announcement of new multi-year cloud contracts and the integration of NVIDIA’s cutting-edge Blackwell GPUs, IREN’s ambitions have ballooned to an anticipated $500 million in annual cloud revenue.

Transformative Partnership with NVIDIA

Recognized as a ‘preferred partner’ by NVIDIA since August, IREN is fast-tracking its transformation by capitalizing on this relationship. The access to next-generation GPUs from NVIDIA offers IREN a competitive edge, essential for constructing high-efficiency computing centers. This partnership is not just a technical alliance but a strategic one, allowing IREN to shift from traditional Bitcoin mining hardware (ASICs) to a focus on delivering robust cloud computing services tailored for large-scale AI model computations.

Investment in AI Infrastructure

IREN is not sparing any expense in its AI shift. As of late September, the company has invested approximately $674 million to acquire a fleet of nearly 12,400 GPUs from industry giants NVIDIA and AMD, effectively doubling its AI cloud processing power to a total of 23,000 GPUs. Among these are key models like the 7,100 NVIDIA B300s, 4,200 NVIDIA B200s, and 1,100 AMD MI350Xs. This vast deployment is set to primarily operate from IREN’s Canadian data centers, with full activation expected by the first quarter of 2026, driving their cloud-based revenues past the half-billion mark.

Diversified Dual-Track Strategy

While embracing AI, IREN hasn’t abandoned its Bitcoin mining heritage. Its substantial mining capability—about 50 exahashes per second—positions it among the global leaders. This dual-track approach not only ensures diversified revenue streams but also secures its position in the rapidly evolving digital landscape. The surge in BTC prices, surpassing historical highs of $126K, has fueled increases in stock prices across the mining industry, with IREN’s shares seeing a 6.81% uplift to $61.68.

The Competitive Edge in HPC and AI

IREN’s move to high-performance computing (HPC) and AI services follows an industry trend, where ASIC mining’s limitations in AI tasks have prompted a strategic realignment among miners. By leveraging their existing electrical, infrastructural, and operational competencies, companies like IREN are leading the charge in the HPC cloud market, drawing competition from firms such as Core Scientific and Hut 8.

The global race to enhance computing capabilities is intensifying, with IREN setting a solid example of agile transformation. While some like MARA and Riot focus on bolstering Bitcoin reserves to attract investors, IREN’s adaptive strategy seeks new growth engines in AI’s expanding computational demands, a shift marking a notable chapter in the intersection of cryptocurrency mining and AI technology.