A Microsoft Bull Just Closed $36 Million in Call Spreads That Do Not Expire Until 2027

IREN announced $2.8B in new contracts, raising its annual revenue target to over $4B. It also completed Horizon 1 delivery for Microsoft. Shares rose 8% and 6% on the news. IREN's AI cloud business is growing, but it reported a $684M net loss in Q4 due to Bitcoin mining impairments. Management expects $4B in ARR by December 2027, with heavy capital spending. Analysts remain bullish, with a consensus 'Strong Buy' rating and a median price target of $77.

IFM Investors and AI Infrastructure Partnership, including BlackRock's GIP, Nvidia, Microsoft, and Abu Dhabi's MGX, have added Azure Capital to their advisory team for a bid on Stack Infrastructure's Asia-Pacific data centers, valued at over $28 billion. Blue Owl Capital, which owns Stack, is reviewing first-round offers but has not yet approved the auction's second stage.

Five news publishers, including The New York Times, filed a court brief accusing Microsoft and OpenAI of copyright infringement, citing internal messages describing their AI models' use of publishers' content as theft. The brief alleges copying at five stages, including data acquisition and training, and argues that fair use does not apply.

IREN's stock rose 21% after signing a $9.7B AI cloud computing deal with Microsoft, peaking at $73 before settling at $67.30. The agreement gives Microsoft access to Nvidia's GPUs for AI initiatives. Microsoft's stock also increased. IREN's CEO called it a validation of their AI Cloud services. Cipher Mining announced a $5.5B, 15-year lease with AWS for AI workloads, causing its stock to jump 22%.

Microsoft is cutting 3,200 jobs in its Xbox division, with 1,600 effective immediately. Four studios are leaving, and one is under review. Xbox head Asha Sharma says this is part of a strategic realignment. The move comes amid mixed signals about Xbox's growth and sustainability.

Microsoft and OpenAI face a lawsuit from the New York Times over alleged copyright infringement related to AI training. Internal documents reveal concerns about large-scale copying, potential market substitution, and data acquisition methods. Microsoft and OpenAI argue their use qualifies as fair use under US copyright law. The case hinges on whether AI training is transformative and harms the market for original works.