AI Infrastructure Power Play: Which Company Offers Better Upside for 2025?

The Trillion-Dollar AI Build-Out Race

The artificial intelligence infrastructure boom is reshaping investment opportunities across the technology sector. Nvidia CEO Jensen Huang’s projection that corporations will commit $3 trillion to $4 trillion toward AI infrastructure and data center expansion through 2030 has set the stage for a fierce competition among service providers. As chip fabrication accelerates and cloud-based AI processing becomes the norm, investors face critical choices about which platforms offer sustainable competitive advantages.

Two Players, Fundamentally Different Paths

The AI infrastructure space has attracted capital from various operators, but profitability models vary significantly. This divergence creates an interesting in-group versus out-group dynamic: those burning cash to capture market share versus those generating profits while scaling.

Iren Limited: The Profitable Outsider

Iren Limited, an Australian operator, has carved out a distinct position by integrating cryptocurrency revenue into its infrastructure strategy. The company reported $240.3 million in Q1 fiscal 2026 (period ending September 30, 2025), representing 335% year-over-year growth. Notably, Iren posted net income of $384.6 million versus a $51.7 million loss in the prior year—a dramatic swing attributable largely to its Bitcoin mining operations, which generated $232.9 million of that revenue.

The company operates four data centers across North America and is expanding aggressively. Its partnership with Microsoft includes a $9.7 billion cloud computing contract leveraging Nvidia GPUs, alongside a $5.8 billion equipment purchase from Dell Technologies. Despite these massive commitments, Iren maintains profitability—a critical distinction in an industry typically characterized by staggering cash burn.

Co-CEO Daniel Roberts highlighted the company’s scaling potential: “Our announced expansion to 140k GPUs represents only 16% of our 3 GW grid-connected power portfolio, providing ample capacity to continue scaling Iren’s AI cloud platform and drive long-term value creation.”

Nebius Group: The Growth-at-All-Costs Contender

Nebius Group, a Netherlands-based company that reinvented itself following Russian sanctions, operates differently. Originally tied to Russian operations as Yandex N.V., the company divested those assets and rebranded to focus exclusively on AI infrastructure provisioning across Europe, the Middle East, and North America.

Nebius achieved Q3 revenue of $146.1 million (up 355% annually) and signed landmark deals: a $3 billion five-year arrangement with Meta Platforms and a previously announced $19.4 billion commitment from Microsoft. The company supplies access to up to 32 Nvidia H100 and H200 GPUs on demand, with newer contracts featuring Nvidia Blackwell architecture.

However, scaling this infrastructure comes at tremendous cost. Nebius reported a net loss of $100.4 million for Q3 alone, with year-to-date losses reaching $273.7 million. CEO Arkady Volozh acknowledged this reality in shareholder communications: “We have consistently said that we are committed to growing our business aggressively, and we are continuing to deliver on this commitment. 2025 has been a building year as we put in place the infrastructure and framework for future rapid growth.” The company targets 1 gigawatt of contracted capacity by end-2026, with aspirations for 2.5 GW eventually.

The Profitability Question

This comparison highlights a fundamental tension in infrastructure investing. GPU procurement, data center construction, and operational expenses demand enormous capital. Suppliers like CoreWeave and Nebius accept substantial losses while racing to build capacity and secure enterprise contracts.

Iren’s edge stems from its Bitcoin mining revenues, which currently dwarf its $7.3 million in AI cloud service income but provide a self-funding mechanism for infrastructure expansion. This positions Iren as an out-group player—operating profitably while peers hemorrhage cash chasing market dominance.

The Investment Verdict

For risk-conscious investors, the distinction is stark. Nebius represents aggressive growth with mounting liabilities—viable only if enterprise demand justifies future profitability. Iren offers a contrasting model: profitable operations with blockchain-derived cash flows funding its AI infrastructure buildout.

While debt can be necessary for capital-intensive businesses, the sustainability question favors Iren’s approach. The company maintains its balance sheet strength while expanding, whereas competitors face ongoing questions about when—or if—their burn rates convert to positive returns.