Iris Energy (IREN) Stock Jumps Nearly 20% on AI Cloud Services Boost

Iris Energy Limited (NASDAQ: IREN) witnessed a notable surge in its stock price during the previous trading session, climbing by 19.94% to reach $8.30 by the close. This upward movement in Iris Energy’s stock value was fueled by a strategic maneuver within the company.

The management of Iris Energy (IREN) unveiled plans to expand its AI cloud services business, aiming to triple its current capacity. To facilitate this expansion, IREN invested $22 million in the acquisition of 568 NVIDIA H100 GPUs, responding to the escalating demand from customers for AI cloud services.

Through its AI cloud platform, Iris Energy now empowers customers to undertake the training of advanced AI and LLM workloads, boasting capabilities to handle trillions of parameters. Moreover, Iris Energy has committed to further bolstering its AI cloud infrastructure with an additional purchase of 568 GPUs, bringing the total count to 816 of the latest-generation NVIDIA H100 GPUs.

With a surge in demand for its AI cloud services, Iris Energy anticipates the delivery and integration of the new GPUs by the second quarter of 2024. Concurrently, the company is actively engaged in financial arrangements to support its anticipated growth trajectory in the AI cloud services sector.

In a significant development, Iris Energy recently inked a cloud service agreement with Poolside, involving the deployment of 248 NVIDIA H100 GPUs. This contractual arrangement spans an initial term of three months, extendable for another three months based on the customer’s preference.

Poolside, having secured a substantial $126 million seed funding round in 2023, is dedicated to pioneering advanced AI for software development. Their unique methodology, RLCEF (Reinforcement Learning from Code Execution Feedback), positions them distinctively among frontier AI enterprises focused on general-purpose models.

Following rigorous testing, Iris Energy’s cloud infrastructure, leveraging its state-of-the-art data centers, successfully met all of Poolside’s stringent requirements. The commencement of the cloud service agreement took place on February 5, 2024. Collaboration with industry leaders like Poolside is poised to augment IREN’s GPU cloud services division, catering to the burgeoning market demand.