Nvidia secures option to buy 30 million shares of AI data center provider Iren at $70 per share, signaling deeper industry involvement.
Nvidia is expanding its role in the AI sector by taking equity positions in other tech companies, including a potential $2.1 billion investment in AI data center provider Iren. The chipmaker secured a five-year option to purchase up to 30 million Iren shares at $70 each, reinforcing its strategic partnerships beyond hardware sales.
The move follows a long-standing relationship between Nvidia and Iren, which has used Nvidia’s high-end processors in its data centers for years. The latest deal aims to deploy Nvidia chips across up to 5 gigawatts of Iren’s AI data centers, aligning with Nvidia’s push into broader AI infrastructure.
While equity investments remain a small part of Nvidia’s balance sheet, analysts view this as an underrated growth catalyst, particularly if smaller AI firms outperform. The arrangement mirrors broader trends among tech investors diversifying within the AI ecosystem.