IREN, Cipher Mining (CIFR) Strike Multi-Billion AI Cloud Deals with Microsoft and Amazon
John: Hey everyone, I’m John, a veteran writer for Blockchain Bulletin, where I break down the latest in Web3, crypto, and blockchain in simple, everyday language. Today, we’re diving into the exciting news about IREN Limited and Cipher Mining Inc. striking massive deals with tech giants Microsoft and Amazon, shifting their focus from Bitcoin mining to AI infrastructure. For readers who want a full step-by-step guide on navigating crypto exchanges amid these changes, you can also check this exchange guide.
Lila: Hi, I’m Lila, John’s curious assistant here to keep things beginner-friendly. John, what’s the big deal with these companies moving from mining Bitcoin to powering AI—does this mean crypto and AI are teaming up?
The Basics of These Deals
John: Great question, Lila. At its core, these deals involve IREN and Cipher providing high-powered computing resources for AI tasks, like training models or running cloud services. As of 2025-11-04, IREN has inked a $9.7 billion, five-year agreement with Microsoft to supply GPU-based cloud infrastructure, including access to Nvidia’s advanced GB300 chips.
Lila: GPU-based? That sounds technical—can you explain it like I’m five?
John: Sure thing! GPUs are like super-fast engines in computers, perfect for handling the heavy lifting in AI, much like how a sports car zips through traffic better than a bicycle. This deal, announced on 2025-11-03, makes Microsoft IREN’s largest customer and highlights the booming demand for AI computing power (and hey, it’s a lot more than just mining digital gold these days).
Background on IREN and Cipher Mining
John: Let’s step back a bit. In the past, both IREN (formerly known as Iris Energy) and Cipher Mining started as Bitcoin mining companies, using vast data centers to solve complex puzzles and earn crypto rewards. IREN, based in Australia, launched its operations around 2021-06-01, focusing on renewable energy for mining.
Lila: Renewable energy? Why does that matter in crypto?
John: Good catch—mining Bitcoin uses a ton of electricity, so companies like IREN turned to solar and wind power to make it more eco-friendly. Cipher Mining, which went public via a SPAC merger on 2021-08-27, also built massive facilities in the U.S., but both have been pivoting since energy costs rose post-2022 crypto winter.
John: As of now, these firms are repurposing their infrastructure for AI, which requires similar high-energy setups but offers steadier revenue (no more waiting for Bitcoin halvings to shake things up).
The Shift from Crypto Mining to AI Infrastructure
Lila: So, why the switch? Is Bitcoin mining not profitable anymore?
John: It’s not that it’s unprofitable, but the landscape changed after events like the 2022-11-11 FTX collapse, which shook investor confidence. Presently, with AI booming—think ChatGPT’s rise since its 2022-11-30 launch—miners see AI as a way to diversify. IREN, for instance, announced its full pivot to AI cloud services earlier in 2025, leveraging their existing data centers.
John: Cipher has followed suit, expanding into AI hosting. This shift is backed by real data: Bitcoin mining’s energy demands match AI’s needs perfectly, and it’s a smart move to hedge against crypto volatility (kind of like not putting all your eggs in one blockchain basket).
Details of the Microsoft and Amazon Partnerships
Lila: Okay, spill the details—what exactly are these multi-billion deals?
John: Starting with IREN’s Microsoft deal from 2025-11-03: It’s worth $9.7 billion over five years, providing Microsoft with computing capacity and Nvidia chips. Separately, IREN has a $5.8 billion hardware deal with Dell for equipment like those GB300 GPUs.
John: On the Cipher side, they secured a $5.5 billion AI hosting agreement with Amazon Web Services, also announced around 2025-11-03. This involves powering AI workloads in Cipher’s data centers, showing how cloud leaders are hungry for more infrastructure amid the AI surge.
Lila: Wow, those numbers are huge! Any other key facts?
John: Absolutely—Microsoft’s deal aims to ease computing shortages for AI booms, as reported by Reuters on 2025-11-03. These partnerships are verified through official announcements and boost the companies’ credibility in the AI space.
Impact on Stocks and the Market
John: The market reacted swiftly. Following the announcements on 2025-11-03, IREN’s stock soared up to 24.7% to a record high, closing nearly 10% up, while Cipher’s shares jumped over 32%.
Lila: That’s impressive—does this affect the broader crypto world?
John: It does! This signals a trend where former miners like these are becoming key players in AI, potentially stabilizing their finances beyond crypto prices. As per Cointelegraph’s update on 2025-11-04, Cipher also reported improved earnings, reflecting positive market sentiment (and who knew mining rigs could moonlight as AI superheroes?).
Looking Ahead: What This Means for Web3 and AI
John: Looking forward, these deals could pave the way for more Web3-AI integrations, like decentralized AI models on blockchains. By 2026, we might see expanded facilities, with IREN planning more data centers powered by renewables.
Lila: Any risks or tips for readers interested in this space?
John: Risks include regulatory scrutiny on energy use, but safeguards like using green energy help. Here are a few tips for beginners eyeing related investments:
- Research company pivots: Check official blogs for updates on shifts from mining to AI.
- Follow trusted sources: Sites like CoinDesk and Cointelegraph for real-time news.
- Understand the tech: Learn basics of GPUs and cloud computing via free resources.
- Stay diversified: Don’t focus solely on one sector—mix crypto with emerging tech like AI.
John: In summary, these deals mark an exciting evolution for IREN and Cipher, blending crypto’s infrastructure with AI’s future. It’s a reminder of how adaptable the blockchain world can be. And if you’d like even more exchange tips to trade related stocks or crypto, have a look at this global guide.
Lila: Totally agree—this shows crypto isn’t just about coins; it’s powering the next big tech wave. Thanks for the breakdown, John!
This article was created using the original article below and verified real-time sources:
- IREN, Cipher Mining (CIFR) Strike Multi-Billion AI Cloud Deals with Microsoft and Amazon
- Microsoft signs $9.7 billion cloud deal with IREN as AI demand swells | Reuters
- Cipher Mining Soars on $5.5 billion Amazon Partnership Amid AI Push – Cointelegraph
- Bitcoin Miners IREN, Cipher Rise After Multi-Billion-Dollar Microsoft, Amazon Deals – Decrypt
- Microsoft’s $9.7 billion deal with IREN shows bitcoin miners’ AI pivot is paying off