NVIDIA has unveiled plans to invest as much as $2.1 billion in IREN Ltd., a data center developer. The two companies have forged a wide-ranging collaboration with the goal of expediting the establishment of artificial intelligence infrastructure. According to the agreement, IREN will bestow upon NVIDIA a five-year subscription right, enabling NVIDIA to buy up to 30 million shares at a price of $70 per share. Moreover, the pair will work hand-in-hand to deploy computing resources valued in the billions of dollars.

IREN and NVIDIA have inked a $3.4 billion contract for AI cloud services. They plan to incrementally incorporate up to 5 gigawatts of NVIDIA infrastructure, with the focal point of their cooperation being the development of IREN's 2-gigawatt Sweetwater campus in Texas.

Following the announcement, IREN's stock price surged by approximately 10% in after-hours trading, while NVIDIA's stock price remained relatively stable. Additionally, IREN has reached an agreement to acquire Ingenostrum, a Spanish data center developer. Initially, Ingenostrum was primarily engaged in Bitcoin mining before shifting its focus to the AI computing sector.

Previously, Microsoft had entered into an agreement with IREN, valued at roughly $9.7 billion, to purchase its AI computing power. It's worth noting that NVIDIA has also made investments in IREN's competitors.