Nvidia Backs IREN to Deploy 5 GW AI Capacity with US$2.1B Stake
Nvidia will take a US$2.1 billion stake in AI data center operator IREN to build up to 5 gigawatts of AI infrastructure, extending beyond its core GPU business. This move contrasts with AMD’s 320% stock surge on 57% Q1 data center growth, highlighting Nvidia’s valuation edge.
1. Stake and Infrastructure Expansion
Nvidia will invest US$2.1 billion for an equity stake in IREN and collaborate to deploy up to 5 GW of AI infrastructure capacity across data centers. This partnership extends Nvidia’s role beyond GPU design into cloud and infrastructure services, aiming to capture more end-to-end value in AI deployments.
2. Competitive Context and Valuation
The move comes as AMD stock has surged 320% over the past 12 months, driven by 57% first-quarter data center business growth and anticipation of its MI450 AI chip launch. Nvidia’s comparatively lower P/E multiple underscores potential investor preference amid intensifying competition in AI hardware markets.