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Bloomberg reported on the 8th that Nvidia has decided to invest up to $2.1 billion (approximately 2.9 trillion won) in IREN, a data center developer.
The two companies announced in a joint statement today that Nvidia has been granted a five-year right to purchase up to 30 million shares of IREN at $70 per share. Through this agreement, Nvidia will collaborate with IREN to build large-scale AI infrastructure.
The two companies plan to combine Nvidia's semiconductor equipment with IREN's site and power acquisition capabilities to build a 2-gigawatt (GW) data center at the Sweetwater campus in Texas. 2GW is enough electricity to supply 1.5 million households.
IREN, a Nasdaq-listed company headquartered in Sydney, Australia, was originally a Bitcoin mining company (Iris Energy) but transitioned to an AI data center business. It has since emerged as a key AI infrastructure company based on a $9.7 billion (approximately 13.4 trillion won) cloud capacity contract with Microsoft (MS).
Following the investment news, IREN's stock price surged 21% to $69.29 in after-hours trading.
Nvidia has been continuously expanding its investments across the entire AI ecosystem recently. The day before, it acquired a stock purchase right worth $500 million (approximately 690 billion won) in Corning, a fiber optic cable manufacturer. Previously, it had also secured stakes in companies like OpenAI and Marvell Technology.
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