NVIDIA to Invest Up to $2.1 Billion in IREN

NVIDIA and IREN announced a partnership under which NVIDIA will invest up to $2.1 billion in the company. The agreement gives NVIDIA the right to buy up to 30 million shares of IREN at $70 per share over a five-year period. The investment and share purchase rights were disclosed in a joint statement from the two companies.

IREN will receive the capital as NVIDIA exercises its option to acquire the shares. The structure allows NVIDIA to increase its stake in IREN gradually while providing the latter with a committed source of funding. The partnership comes as both companies operate in sectors tied to artificial intelligence infrastructure.

IREN runs large-scale data centers and has been expanding its computing capacity. NVIDIA supplies the graphics processing units that power many of those facilities.

Under the terms, IREN issued NVIDIA a five-year right to purchase as many as 30 million shares. The exercise price is set at $70 per share. If fully exercised, the transaction would total $2.1 billion. The companies did not disclose how much of the investment NVIDIA plans to deploy immediately or over what schedule.

The agreement gives NVIDIA flexibility on timing while locking in the share price for the duration of the five-year window.

Both firms have reported strong demand linked to artificial intelligence computing. IREN has been adding data center capacity to serve clients that require high-performance computing. NVIDIA has been increasing production of its latest GPU models to meet that demand.

The partnership provides IREN with access to capital that can support further expansion of its facilities. For NVIDIA, the arrangement offers an ownership position in a company that purchases and deploys its hardware at scale.