Iris Energy (NASDAQ:IREN) saw its stock price surge approximately 10% in early U.S. trading on Tuesday following the announcement of significant multi-year cloud service agreements with artificial intelligence firms. The partnerships are aimed at deploying Nvidia’s (NASDAQ:NVDA) Blackwell GPUs, a move that highlights Iris Energy’s strategic expansion in the burgeoning AI infrastructure sector.
As demand for high-performance chips continues to escalate, the company has been proactive in increasing its AI Cloud capacity. Iris Energy is on track to achieve over $500 million in annualized run-rate revenue by the end of the first quarter of 2026, driven by a robust portfolio of 23,000 GPUs that are either presently operational or on order.
Notably, about 11,000 of these GPUs are now under customer contracts, equating to an anticipated $225 million in annual recurring revenue projected to become active by late 2025. This recent development underscores Iris Energy’s ongoing transformation from a focus strictly on digital mining to a more diversified approach centered on AI-driven data services.
The partnerships reflect a larger trend within the industry, as enterprises increasingly invest in GPU-powered cloud infrastructure to support their AI initiatives. These agreements position Iris Energy favorably in a competitive market, while also aligning its growth strategy with the demands of a rapidly evolving technological landscape.
