IREN delays Microsoft AI deliveries, unveils $15 billion spending plan

AI data center firm IREN delayed some infrastructure deliveries for Microsoft and announced an additional $15 billion in spending, despite a broader AI stock selloff pressuring the sector's massive buildout. The delay stems from Microsoft requesting network-design changes and will not incur financial penalties, though IREN pushed its target for over $4 billion in annualized run-rate revenue to January, potentially extending to February. The company beat quarterly revenue estimates, with AI cloud revenue rising to $200 million from $71 million, lifting shares 4% in extended trading after closing down 17%. IREN, valued at about $7 billion, is building 200 megawatts of data-center capacity for Microsoft in Texas. Its capital commitments reached $18.95 billion at the end of September, up from $13.81 billion, while GPU hardware nearly tripled to $5.82 billion. Microsoft is tightening oversight of neocloud projects amid delays and rising costs.