The software moat argument is compelling here. While IREN can scale quickly in the near term, the propetary stack Nebius is building creates real switching costs that bare metal can't replicate. Once customers integrate deeply with those orchestration layers, moving to a competitor becomes painful and expensive. This is exactly how AWS and Azure built their dominance in cloud computing.
The real edge here is NBIS building out their propritery orchestration layer early. When demand eventually normalizes, hyperscalers will probabley internalize some of their infrastrcture needs, but the switching costs Nebius is creating now should keep clients stickier. Its like betting on a platform play over pure commoditized compute.
Location really is everything for these AI compute plays. IREN's proximity to existing grid infrastrucure and lower land costs gives them a real edge on deployment speed compared to NBIS. The Microsoft deal proves that hyperscalers are willing to pay premiums for immediat capacity rather than wait for new builds.
The software moat argument is compelling here. While IREN can scale quickly in the near term, the propetary stack Nebius is building creates real switching costs that bare metal can't replicate. Once customers integrate deeply with those orchestration layers, moving to a competitor becomes painful and expensive. This is exactly how AWS and Azure built their dominance in cloud computing.
Yes, well summarised!
The real edge here is NBIS building out their propritery orchestration layer early. When demand eventually normalizes, hyperscalers will probabley internalize some of their infrastrcture needs, but the switching costs Nebius is creating now should keep clients stickier. Its like betting on a platform play over pure commoditized compute.
Yep!
Location really is everything for these AI compute plays. IREN's proximity to existing grid infrastrucure and lower land costs gives them a real edge on deployment speed compared to NBIS. The Microsoft deal proves that hyperscalers are willing to pay premiums for immediat capacity rather than wait for new builds.
Great deal for $IREN indeed!