AWS, Lumen shine light on AI-fuelled deal

• US operator Lumen Technologies is attracting major big tech deals as AI services fuel demand for network capacity between datacentres 
• It has struck a multi-faceted deal with Amazon Web Services (AWS)
• It has already announced deals in the past few months with Microsoft and Meta
• Lumen’s share price is up by more than 300% since late July 

Only days after striking a major network capacity deal with big tech giant Meta, US network operator Lumen Technologies has announced a multifaceted deal with Amazon Web Services (AWS). 

Lumen will use AWS technologies, including AI, machine learning (ML) and cybersecurity, “to modernise its applications and systems and drive innovation in its portfolio of communications, network services, security, and voice products.” 

At the same time, Lumen will provide the AWS with fibre lines that will link the hyperscaler’s datacentres, “helping enterprise customers build and deliver highly scalable AI applications across AWS Regions and AWS Local Zones,” stated the operator in this announcement. 

Specifically, Lumen will “provide dedicated infrastructure with private fibre connections between AWS Regions and Local Zones. AWS will continue to deploy its custom network technologies on this fibre, enabling industry-leading security, availability, and performance between AWS locations. The enhanced AWS network will enable high-bandwidth and dynamic connections that provide customers with the ability to develop generative AI applications, train AI models, and deliver new AI-powered products across its Region and Local Zone footprint.” 

Lumen’s president and CEO, Kate Johnson, stated: “AI is reshaping industries, and the network infrastructure supporting it needs to be just as dynamic and responsive. AWS wants their customers to thrive in the AI economy and this network expansion will help enable that. As the trusted network for AI, Lumen is using next-generation fibre to help AWS deliver high-bandwidth solutions that will allow their customers to experience and deliver AI’s full potential.” 

Matt Garman, CEO of AWS, added: “The next wave of innovation will be driven by generative AI, which requires a combination of secure, scalable cloud infrastructure and flexible networking. Together, AWS and Lumen will enable high-performance network connections that ensure customers across every industry can build and deliver compelling, secure, and reliable AI applications at scale.” 

The Meta and AWS deals come in the wake of Lumen’s announcement in August that it had secured $5bn in new business deals to help it address the major demand for connectivity fuelled by AI. The company explained that large businesses are looking to expand their fibre capacity as it becomes “increasingly valuable and potentially limited” due to “booming AI needs”. One of these deals includes a collaboration with Microsoft, announced in late July, that will see Lumen act as a “strategic supplier” for the tech giant’s network infrastructure needs driven by AI developments. 

The new deals, which signal clear success for Lumen’s new strategy, have given the operator’s share price a massive boost: Since the Microsoft deal was announced on 24 July, Lumen’s share price has risen by more than 300% from $1.64 to $6.66, giving the operator a market valuation of more than $6.7bn. 

- Ray Le Maistre, Editorial Director, TelecomTV