The demand for AI computing power continues to surge! IREN (IREN.US) splurges 1.6 billion US dollars to purchase the Blackwell computing system from Dell Technologies, Inc. Class C.

IREN (IREN.US), a successful transition from a Bitcoin mining company to a large-scale AI data center operator, announced on Tuesday that it has agreed to purchase NVIDIA Corporation's Blackwell architecture AI computing power system from Dell Technologies, Inc. Class C for approximately $1.6 billion. IREN's goal is to bring more AI computing power resources online to keep up with the increasing demand for AI computing power infrastructure worldwide under the dominance of AI intelligent beings. According to an internal statement from IREN, this transaction is to serve its previously announced five-year, $3.4 billion cloud computing AI computing power service contract with AI server manufacturing giant Dell Technologies, Inc. Class C. IREN's significant $1.6 billion purchase of Blackwell is another major signal of the "continuously surging global demand for AI computing power." IREN's purchase of Blackwell computing power systems, Microsoft Corporation's early locking of AI GPU cloud computing systems for IREN, and NVIDIA Corporation's investment in data center operator IREN are all essentially answering the same question: the demand for AI computing power infrastructure is strong enough to make the market lock in the supply of computing power around 2027. The four major tech giants (Microsoft Corporation, Amazon.com, Inc., Meta Platforms, the parent company of Facebook, and Alphabet Inc., the parent company of Alphabet) announced financial reports almost simultaneously, releasing a critically important signal for the super bullish market for AI computing power: the arms race for AI computing power infrastructure/resources is far from over, with total capital expenditures expected to reach at least $725 billion by 2026significantly higher than the spending scale in 2025 and the latest Wall Street analysts' expectations. Tech giants are willing to bear pressure on cash flow and profit margins rather than fall behind in the computing power arms race. NVIDIA Corporation's latest performance clearly highlights the continued frenzy in the global AI computing power infrastructure construction, expanding from AI GPU/AI ASIC to data center CPUs, high-performance networking infrastructure, enterprise-level HBM/DRAM/NAND storage, complete server clusters, AI super factories, and enterprise-level large-scale AI cloud computing systems. On Wall Street, analysts' bullish sentiment towards the "global AI leader" NVIDIA Corporation is heating up, with the average target price implying a market value of over $7 trillion for NVIDIA Corporation, and a unanimous expectation that spending on computing power infrastructure for AI training/inference will reach at least $3 trillion by 2030. AI computing power demand drives super orders! IREN ramps up Blackwell systems, with annual revenue target jumping to $4.4 billion Bitcoin mining companies are transitioning to AI data center parks compared to cloud computing giants starting from scratch to build data centers faster, closer, and more cost-effectively. This is mainly due to the fact that computing power infrastructure, electricity, and land are already in place: with grid connections, large substations, and available computing power infrastructure parks, cloud computing giants can quickly convert or slightly upgrade to officially launch large-scale AI data centers, while also solidifying cash flow through multi-year AI contracts. This allows them to have a significant speed and capital efficiency advantage over building ultra-large AI data center parks from scratch amidst the challenging supply and approval restrictions in the large-scale AI infrastructure sector and the electrical grid connection environment. According to IREN's forecasts and outlook data, after the actual contract is put into operation, it is expected to increase IREN's annual recurring revenue (ARR indicator) from $3.7 billion to $4.4 billion, reflecting its continuous positive progress in bringing GPU capacity online and expanding AI computing power infrastructure capacity. These Blackwell AI computing systems will be deployed in IREN's existing AI data center park in Childress, Texas, and are expected to be ready by early 2027. IREN stated that the $1.6 billion purchase price covers all infrastructure equipment and computing power system services, including core AI GPU computing products, server equipment, storage components, high-performance networking infrastructure, auxiliary equipment, integration services, and warranty services, with payments to be made after delivery. Daniel Roberts, Co-CEO of IREN, said, "In a market where time-to-compute is everything, ensuring sufficient AI computing power infrastructure capacity and accelerating deployment into operational mode is our top priority." In addition, NVIDIA Corporation, the world's largest company by market cap and a "AI chip superpower", announced earlier this month that as part of a broader transaction to deploy up to 5 gigawatts of AI computing power infrastructure, it will invest up to $21 billion in IREN. IREN has agreed to grant NVIDIA Corporation a five-year warrant allowing it to purchase up to 30 million shares at an exercise price of $70 per share. The two companies will also jointly deploy AI worth billions of dollars. As part of the agreement, NVIDIA Corporation will invest up to $21 billion in IREN. NVIDIA Corporation and IREN plan to jointly deploy large-scale AI data centers, utilizing NVIDIA Corporation's exclusive computing power devices and IREN's expertise in land acquisition, power infrastructure, and other construction elements to advance project construction. Last November, American Software, Inc. Class A, one of the cloud computing giants Microsoft Corporation (MSFT.US), reached a deal worth up to $9.7 billion with IREN, including priority access to NVIDIA Corporation's most advanced AI computing power clusters. From simple "mining" to AI data center parks, Bitcoin mining companies are capitalizing on the AI super trend IREN is essentially a power-intensive data center operator that started from cryptocurrency mining infrastructure. Its core capabilities in the past were acquiring large-scale power, building high-density computer rooms, and operating Bitcoin mining equipment; now it is transferring these "power + computer room + operation" capabilities to AI cloud computing power. IREN's transformation logic is very clear: Bitcoin mining companies already have access to power, land, cooling, grid connections, and experience in operating large-scale server clusters, and it just so happens that these engineering resources are the most scarce for AI data centers. Therefore, IREN's shift from mining companies to AI data centers is not simply changing tracks but rather revaluing its existing energy and computing power infrastructure as AI cloud capacity. The development of generative AI applications and AI beings that greatly increase human social productivity is driving the continuous expansion of AI computing power demand, forcing tech giants to build and expand AI data centers on a large scale. Investors are clearly starting to take notice and are pouring funds into Bitcoin mining companies that are transitioning to AI data centers. IREN's stock price has soared by 60% this year, and its full-year increase in 2025 reaches as high as 285%. Mining companies that were once focused on mining cryptocurrencies such as Bitcoin are signing long-term contracts for computing power resources for tech giants' massive AI workloads using their land, power resources, and data center computing power infrastructure. For these mining companies, the computing power infrastructure previously focused on mining is perfectly suited for the data center computing power resources needed for AI training/inference, and these companies already have grid connections, substations, land resources, and other infrastructure such as power distribution on hand, enabling them to adapt to massive AI workloads in a very short time. Last year, Microsoft Corporation signed a $9.7 billion AI computing power purchasing agreement with IREN, involving NVIDIA Corporation's most advanced AI GPUs; NVIDIA Corporation announced this month that it will invest up to $21 billion in IREN as part of the deployment of up to 5 gigawatts of AI infrastructure. This means that a closed loop is forming between cloud computing giants, GPU suppliers, and new AI data center operators: Microsoft Corporation is spending a huge amount to purchase computing power resources, IREN is delivering a complete set of cutting-edge AI computing power clusters, Dell Technologies, Inc. Class C is providing AI server systems, and NVIDIA Corporation is providing underlying AI chips and capital support. By combining with the latest AI revenue data from the global AI application leader Anthropic, the demand side of this chain is very strong. Anthropic expects Q2 revenue to reach $10.9 billion, double Q1's $4.8 billion, and may achieve quarterly operating profit of $559 million; it also agreed to pay SpaceX $1.25 billion per month to purchase computing power resources, demonstrating the explosive rise in demand for AI training/inference computing power resources brought about by advanced AI companies, as well as the related computing power consumption brought about by the programming-oriented AI agents and enterprise AI tools these companies introduce. Therefore, IREN's purchase of Blackwell, Microsoft Corporation's early locking of AI GPU cloud computing capacity, NVIDIA Corporation's investment in data center operators, are essentially answering the same question: the demand for AI computing power is strong enough to make the market lock in the supply of data center computing power resources around 2027. Morgan Stanley states that the AI computing power arms race has entered a phase of systemic expansion, with the institution revising its capital expenditure expectations for major U.S. tech giants for 2026 from $433 billion a year ago to a significant increase to $805 billion, and capital expenditure for 2027 is expected to reach at least $1.1 trillion, a significant increase from the previously predicted $950 billion. Morgan Stanley's latest expectations highlight the supply chain bottleneck in terms of AI computing power infrastructure has expanded from "massive GPU/ASIC purchases" to address the complete delivery process of "solving data center power equipment, liquid cooling, data center CPUs, DRAM/NAND/HBM, optical communication/optical interconnection, high-performance network interconnection, transformers, gas turbines, and other complete links of AI data center infrastructure."