(MENAFN) Microsoft has finalized a massive $9.7 billion agreement with AI cloud infrastructure provider IREN, securing critical access to Nvidia processors in a move signaling intensified competition for scarce AI computing resources.

The multi-year arrangement guarantees Microsoft priority access to Nvidia's advanced chips through a five-year supply window, IREN announced Monday in an official statement.

In a parallel transaction, IREN disclosed it has committed approximately $5.8 billion to acquire processors and supporting hardware from Dell Technologies. The equipment will be progressively deployed at IREN's Texas data center complex throughout 2026, according to the company.

IREN plans to finance the substantial capital investments through multiple streams: current cash reserves, advance customer payments, operational cash generation, and supplementary financing arrangements, the firm's statement revealed.

Daniel Roberts, IREN's co-CEO, said: "We're proud to announce this milestone partnership with Microsoft, highlighting the strength and scalability of our vertically integrated AI Cloud platform."

"This agreement not only validates IREN's position as a trusted provider of AI Cloud services, but also opens access to a new customer segment among global hyperscalers," he added.

The deal underscores the surging demand for AI computing infrastructure as technology giants race to expand their artificial intelligence capabilities amid a global shortage of specialized processors.

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