Iris Energy launches AI-focused GPU cloud service

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Iris Energy launches AI-focused GPU cloud service
Credit: © Reuters.

SYDNEY - Iris Energy Limited (NASDAQ: IREN), an Australian company specializing in renewable energy-powered data centers, has initiated a new cloud service featuring NVIDIA (NASDAQ: NVDA ) H100 GPUs, targeting the artificial intelligence sector. The service began on Monday, February 5, 2024, following a successful testing phase with Poolside AI SAS, a prominent AI firm focused on software development.

The initial agreement spans a three-month period, with Poolside retaining the option to extend the service for an additional three months. Poolside, which secured $126 million in seed funding in mid-2023, distinguishes itself with a unique approach to AI known as RLCEF (Reinforcement Learning from Code Execution Feedback), differentiating from general-purpose AI models.

Iris Energy's co-founder and co-CEO, Daniel Roberts, expressed satisfaction with the partnership, highlighting the company's commitment to expanding its GPU cloud services to meet increasing market demand. Poolside's CEO and co-founder, Jason Warner, formerly CTO of GitHub, praised Iris Energy's professionalism and service quality, which were instrumental in their selection process.

This development signifies Iris Energy's strategic move to diversify its offerings and penetrate the high-performance computing (HPC) solutions market. The partnership with Poolside AI is a step towards servicing the growing demand for GPU compute resources in the AI industry.

The information for this article is based on a press release statement from Iris Energy Limited.

InvestingPro Insights

Iris Energy Limited (NASDAQ: IREN), with its latest venture into AI cloud services leveraging NVIDIA H100 GPUs, has demonstrated a strategic pivot towards high-performance computing solutions. As the company embarks on this new initiative, the financial metrics from InvestingPro offer insights into its current market standing.

The company holds a market capitalization of $312.46 million, reflecting its position in the industry. With a notable gross profit margin of 76.3% for the last twelve months as of Q4 2023, Iris Energy showcases its ability to manage costs effectively, which is crucial as it scales up its operations in the competitive AI cloud services sector.

InvestingPro Tips also highlight that Iris Energy has a high shareholder yield and analysts are predicting sales growth in the current year, which could be influenced by their recent expansion into AI cloud services. This optimism is tempered by the fact that the company is not currently profitable, with a negative P/E ratio of -1.27, and has been quickly burning through cash. However, these factors may change as the company's new services gain traction and begin to contribute to the bottom line.

For investors and enthusiasts looking to delve deeper into Iris Energy's prospects, there are 17 additional InvestingPro Tips available, which can be accessed with the coupon code SFY24 for an additional 10% off a 2-year InvestingPro+ subscription or SFY241 for an additional 10% off a 1-year InvestingPro+ subscription. These tips provide a comprehensive analysis of the company's financial health and market potential, helping to make informed decisions about the company's future in the AI and HPC marketplaces.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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