IREN Invests Heavily in Nvidia and AMD GPUs to Fuel AI Cloud Expansion
IREN Doubles Down on AI Cloud with Massive GPU Investment
Iris Energy Limited (NASDAQ: IREN) has announced a significant strategic investment of approximately $670 million to acquire a substantial fleet of GPUs from leading manufacturers Nvidia and AMD. This move is poised to more than double the company's existing AI cloud computing capacity, bringing its total GPU count to nearly 23,000 units. The primary objective behind this aggressive expansion is to capitalize on the burgeoning demand for artificial intelligence (AI) computing power and to solidify IREN's position as a key provider in the AI cloud services market. The company has set an ambitious target of achieving an annualized run-rate revenue (ARR) exceeding $500 million from its AI cloud operations by the first quarter of 2026.
Strategic GPU Procurement and Capacity Expansion
The substantial order includes a mix of cutting-edge GPUs designed for intensive AI workloads. Specifically, IREN has procured 7,100 Nvidia B300 GPUs, 4,200 Nvidia B200 GPUs, and 1,100 AMD MI350X GPUs. These new acquisitions will be integrated into IREN's existing infrastructure, with deliveries and installations expected to occur over the coming months. A significant portion of this new hardware will be deployed at IREN's Prince George campus. Upon completion of these deliveries, IREN's total GPU fleet will comprise approximately 23,000 units, including its existing inventory of 1.9k NVIDIA H100s & H200s, 19.1k NVIDIA B200s & B300s, 1.2k NVIDIA GB300s, and the newly acquired 1.1k AMD MI350Xs. This expansion represents a significant leap in computational power, enabling IREN to serve a larger and more demanding clientele.
Addressing Surging AI Demand and Market Dynamics
The decision by IREN to invest heavily in GPU capacity is a direct response to the unprecedented demand for AI computing resources, which is currently outpacing supply on a global scale. The company highlighted that customers are increasingly seeking to reserve AI hardware capacity well in advance of its delivery, a trend that IREN is well-positioned to meet. The strategic inclusion of GPUs from both Nvidia and AMD is a key aspect of IREN's strategy, allowing the company to offer a more diverse range of solutions and cater to a wider market segment. This dual-sourcing approach not only broadens its addressable market but also enhances its resilience by reducing dependence on a single supplier. IREN is reportedly already in discussions for multi-thousand GPU clusters and high-performance computing systems, underscoring the strong market appetite for its expanded offerings.
Financial Targets and Revenue Projections
With this significant increase in GPU capacity, IREN is projecting a substantial ramp-up in its AI cloud revenue. The company
AI Summary
Iris Energy (IREN) has made a substantial investment of $670 million in GPUs from industry leaders Nvidia and AMD to aggressively expand its AI cloud capabilities. The company announced the procurement of 12,400 new GPUs, comprising 7,100 Nvidia B300s, 4,200 Nvidia B200s, and 1,100 AMD MI350X units. This acquisition is set to more than double IREN's existing GPU capacity, bringing its total fleet to approximately 23,000 units. Deliveries are scheduled to commence in the coming months, with the new hardware primarily slated for deployment at IREN's Prince George campus. This strategic expansion is a direct response to the escalating demand for AI computing power, with customers increasingly looking to secure hardware resources in advance. The company is already engaged in discussions for multi-thousand GPU cluster deployments, indicating strong market interest. IREN aims to leverage this enhanced capacity to achieve an annualized run-rate revenue (ARR) of over $500 million from its AI cloud business by the first quarter of 2026. The inclusion of both Nvidia and AMD GPUs diversifies IREN's offering, allowing it to cater to a broader market and mitigate reliance on a single supplier. While the company is heavily investing in AI infrastructure, it anticipates minimal impact on its Bitcoin mining operations, with plans to redeploy existing ASIC miners to other facilities. This strategic pivot underscores IREN's commitment to becoming a major player in the AI infrastructure space, capitalizing on the current AI boom while maintaining its foundation in renewable energy-powered data centers and Bitcoin mining.