Iris Energy Limited has announced a significant investment in its AI Cloud Services business with the purchase of 1,080 NVIDIA H200 GPUs. This $43.9 million acquisition is set to bolster IREN’s GPU fleet and is expected to drive a notable increase in the company’s earnings from AI Cloud Services.
- Details of the Purchase
- Acquisition of 1,080 NVIDIA H200 GPUs for $43.9 million.
- Delivery and commissioning anticipated in Q4 2024.
- This purchase will increase IREN’s total GPU fleet to 1,896 NVIDIA H100 and H200 GPUs.
- Impact on AI Cloud Services
- Expected to grow AI Cloud Services contribution to approximately 10% of IREN’s earnings by the end of 2024.
- IREN’s involvement in NVIDIA’s Cloud Partner Program and ongoing discussions indicate strong future growth potential.
- Expansion of Bitcoin Mining Operations
- Current Bitcoin mining capacity at 18.8 EH/s, with an expansion to 30 EH/s planned by Q4 2024.
- Estimated $20k electricity cost per Bitcoin mined, with an all-in cash cost of $31k per Bitcoin.
- Business Mix and Future Outlook
- AI Cloud Services set to become a significant part of IREN’s earnings portfolio.
- Continuous growth expected through 2025, reflecting a shift towards advanced AI and data center capabilities.
- Strategic Importance
- The investment underscores IREN’s commitment to enhancing its AI Cloud Services.
- Expands the company’s technological infrastructure and aligns with its strategic growth plans.
IREN’s acquisition of 1,080 NVIDIA H200 GPUs marks a pivotal step in expanding its AI Cloud Services. This investment is anticipated to substantially increase the company’s earnings from AI, while also strengthening its position in the GPU market and Bitcoin mining operations. As IREN moves forward, this expansion is expected to drive further growth and enhance its technological capabilities.
