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Iren Emerges as Unexpected Rival to CoreWeave in the AI Cloud Race

Investors are treating Iren’s conversion of bitcoin-mining cash into AI compute as a credible path to profitable scale.

Overview

  • Iren has shifted from bitcoin mining toward AI cloud services and reported AI-cloud revenue that rose roughly eightfold year over year while mining now makes up about half of its sales.
  • The company still posts near-term net losses from decommissioning mining hardware and heavy platform investments as it rebuilds operations for AI workloads.
  • JPMorgan’s analyst upgrade and reported ties to Nvidia have bolstered Iren’s credibility with investors and helped lift its stock sentiment.
  • CoreWeave remains focused on rapid expansion but announced a convertible debt and share sale and faces large backlog, heavy cash burn and multibillion-dollar leverage that raise financing and execution risks.
  • The wider trend is a new class of 'neoclouds' that repurpose land, power and data-center shells into AI capacity, which could change supply, pricing and who can scale profitably in the AI infrastructure market.