Several announcements were released yesterday that went a long way toward reducing fears about the AI trade, including IREN’s news that it has won $2.8bn in contracts from AI developers.
As a result, IREN has lifted its year-end AI Cloud annualised run-rate revenue target from $3.7bn to more than $4bn, after signing new multi-year cloud services contracts with leading AI developers worth $2.8bn in total contract value.
IREN shares closed yesterday’s session 20% higher.
Around 85% of ARR is now under contract, with the Nasdaq-listed company’s customer base spanning Microsoft, NVIDIA, Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, Fal AI, Hume AI and a new, unnamed leading AI developer, across both bare metal and managed cloud services.
Demand from hyperscalers, enterprises, AI developers and frontier labs continues to exceed IREN’s available and planned capacity, and the company said it remains selective in allocating capacity ahead of commissioning, prioritising diversification across its customer base.
This is a similar story for most of IREN’s AI infrastructure peers, most of whom also had a strong day in US trading yesterday.
Pricing continues to strengthen, and recent contracts include customer prepayments covering around 45% of the associated GPU capital expenditure, reducing IREN’s net funding requirement for those deployments. Contracts across the portfolio carry a weighted average term of approximately four years.
Daniel Roberts, Co-Founder and Co-CEO of IREN, said: “Our vertically integrated AI Cloud platform is scaling at pace. In the past 12 months we have expanded from approximately 3MW of self-built AI Cloud capacity to 480MW being delivered this year, with 1.2GW targeted for 2027, broadening our customer base across hyperscalers, enterprises and AI developers.”
“We are proud to support leading companies building frontier applications across design, physical AI and robotics, generative media, AI search and model development.”