Nvidia said on Thursday it will invest up to $2.1 billion in IREN, a move tied to a broader plan to deploy up to 5 gigawatts of data center infrastructure aimed at meeting surging demand for artificial intelligence computing capacity. The companies described the arrangement as a partnership to speed construction of large-scale AI facilities by pairing Nvidia’s factory architecture with IREN’s existing infrastructure operations.
In extended trading after the announcement, shares of IREN rose by roughly 9%. The stock had closed regular session trading at $56.85.
As part of the agreement, IREN has granted Nvidia a five-year option to acquire up to 30 million shares at an exercise price of $70 per share. The structure provides Nvidia the right, over a multi-year window, to increase its equity stake subject to the contract terms.
The two companies said future deployments under the partnership are expected to concentrate on IREN’s Sweetwater campus in Texas, which has been described as a 2-gigawatt site. The overall deployment scope for the collaboration could reach as much as 5 gigawatts.
The announcement comes against a backdrop in which major U.S. technology firms signaled continued robust AI-related spending. All four U.S. tech giants reported results last week and indicated that AI investments were unlikely to slow, with combined outlays projected to exceed $700 billion this year, according to the companies’ reporting referenced by the announcement.
IREN has previously struck large cloud contracts, including a $9.7 billion cloud agreement signed last year with Microsoft. The company is characterized as a so-called "neocloud" provider: firms that deliver cloud services built on Nvidia processors, enabling large technology customers to access substantial computing power without constructing new company-owned data centers.
The collaboration is presented by both parties as a way to accelerate the deployment of sizable AI "factories" by combining Nvidia’s design approach for AI facilities with IREN’s operational infrastructure expertise. Details on the timing and phased buildout were not provided beyond the scale parameters and the indicated focus on Sweetwater.
Market reaction and context
Following the disclosure of the investment framework, IREN’s shares moved higher in extended trading, reflecting investor interest in capacity plays tied to AI demand. The arrangement gives Nvidia an equity option with a five-year horizon and a defined exercise price, while providing IREN a potential source of capital to support large-scale deployments.