Withman A Liriano

🚨 $IREN x PERPLEXITY: WHAT DOES THIS DEAL MEAN? Writing this from a neutral perspective though I'm bullish on IREN. Alright then, $IREN confirms that Perplexity will use its AI Cloud infrastructure, powered by $NVDA Blackwell Ultra GPUs. Now, Perplexity was already included in the $2.8B of multi-year AI developer contracts $IREN announced in July that helped to push contracted ARR above $4B. This is an incremental color on an existing relationship. It's all about the gap baby 🙂 As of the August update, $IREN reported $4B contracted ARR against $1B operating ARR. So closing that $3B difference will require buying and installing GPUs, commissioning capacity and converting signed contracts into accepted, billable infrastructure. the company has arranged substantial GPU financing including against the $MSFT Microsoft deal and recent contracts have included meaningful customer prepayments but the absolute capital outlay and execution risk are still large. Perplexity’s engineering team highlighted better performance at lower compute cost. I mean its good for the customer. For IREN, attractiveness depends on realized GPU pricing, utilization, depreciation and the cost of capital after financing. We still lack deal level details on committed capacity, pricing, or contribution for this specific agreement. November 5 earnings guys. $IREN already has the contracts. The questions are: - How fast is contracted capacity becoming operating ARR? - What capital is required to get there? - What do margins look like after financing costs?