Dell agreed to sell Nvidia air-cooled Blackwell AI systems to IREN for $1.6B, supporting a five-year, $3.4B cloud AI service contract and boosting IREN’s ARR to $4.4B by early 2027. Meanwhile, Dell’s AI Factory partnership secured over 5,000 enterprise customers, underpinned by a $43B hardware backlog.
Dell agreed to sell Nvidia air-cooled Blackwell AI systems to IREN for $1.6B, with deployment at Childress, Texas expected by early 2027. The purchase covers all GPUs, servers, storage, networking, integration services and warranties, with payments scheduled after delivery.
The transaction underpins IREN’s five-year, $3.4B cloud AI service contract with Dell and will boost IREN’s annualized run-rate revenue to $4.4B from $3.7B upon commissioning of the systems.
Dell’s AI Factory partnership with Nvidia has secured over 5,000 enterprise customers, including 1,000 in Q1 FY2027, and has built a $43B hardware backlog, reflecting strong on-premise infrastructure demand as token consumption costs have surged 320-fold.
Dell is set to report fiscal Q1 revenues near $35.5B, driven by AI server demand, while its stock has gained 95% year-to-date; potential margin pressure from PC competition and valuation concerns remain.
Marketwatch
