Microsoft has entered into a $9.7 billion cloud services agreement with Australian artificial intelligence infrastructure provider IREN, a deal that will give the tech major access to Nvidia chips as it scales its AI and cloud operations, AP reported.The five-year agreement includes a 20% prepayment and is aimed at supporting Microsoft’s efforts to meet the surging demand for AI computing power. The announcement comes shortly after the Redmond-based company reported an 18% rise in quarterly sales to $77.7 billion, surpassing Wall Street estimates. The results, however, also drew attention to Microsoft’s massive investments in cloud infrastructure and AI capabilities.During the July–September quarter, Microsoft spent nearly $35 billion on capital expenditures, almost half of which went toward acquiring computer chips, with the rest allocated to data centre real estate and related infrastructure.“IREN’s expertise in building and operating a fully integrated AI cloud, from data centres to GPU stack, combined with their secured power capacity makes them a strategic partner,” said Jonathan Tinter, Microsoft’s president of business development and ventures, in a statement. “This collaboration unlocks new growth opportunities for both companies and the customers we serve.”The partnership comes amid Microsoft’s broader push to expand its AI footprint. Last week, the company announced a new deal with OpenAI that briefly lifted its valuation to $4 trillion for the second time this year. Under the revised agreement, Microsoft will hold a roughly 27% stake in OpenAI’s new for–profit entity, worth about $135 billion — slightly ahead of the $130 billion stake held by the OpenAI nonprofit.Meanwhile, IREN said on Monday that it had also signed a separate $5.8 billion deal with Dell Technologies to purchase chips and ancillary equipment. The Australian firm plans to deploy the new hardware in stages through next year at its Childress, Texas, campus.Following the announcements, shares of IREN surged 22% in premarket trading in the US, while Microsoft’s stock edged slightly higher.