Microsoft $9.7 billion cloud service deal with Iren provides access to Nvidia chips

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Microsoft has entered into a $9.7 billion cloud services contract with Iren, an artificial intelligence cloud service provider, that will give it access to Nvidia chips, according to an Associated Press report.

The deal, which includes a 20% prepayment, runs for five years.

The company spent roughly $35 billion from July through September on capital expenditures focused on AI tools and cloud computing. Half of that expenditure went toward computer chips.

Microsoft also announced a deal with OpenAI last week, giving it about a 27% stake in OpenAI’s new for-profit corporation designation.

Microsoft recorded quarterly sales growth of 18%, totaling $77.7 billion.

Digital Partners