Telecom’s Lumen Technologies Secures $5 Billion in AI Deals, Stock Soars 93%

Lumen Technologies, a telecommunications giant, known for its fiber networks essential for AI demand data processing, revealed that it has secured $5 billion in new business.

Lumen Technologies has announced a significant boost in business, driven by the surge in AI demand. This growth comes from companies eager to install more fiber cables as AI needs become more pronounced and fiber becomes a valuable and potentially limited resource.

Kate Johnson, Lumen Technologies’ chief executive, highlighted the impact of AI demand on business operations, saying that the “AI economy is changing business operations, and companies are recognizing they need powerful network infrastructure to manage the unprecedented data flows today and the demand in the future.”

Johnsson further adds that their “partners are turning to us because of our AI-ready infrastructure and expansive network. This is just the beginning of a significant opportunity for Lumen, one that will lead to one of the largest expansions of the internet ever.”

Stock Performance, Giant Alliances

On this positive development, Lumen shares surged about 93% to $5 per share through Tuesday’s market close. The telecom company’s stock hit a 164.6% rise this year alone.

In July, Lumen announced that it had agreed to a strategic partnership with Microsoft. It would use the tech giant’s cloud computing platform, Azure, to drive digital transformation and AI demand projects.

As for the giant, Microsoft chose Lumen to add extra network capacity for its data centers.

Even though the firm posted a net loss of $49 million in the second quarter (Q2) of 2024, this can still be perceived as quite of an improvement from a year ago, when the company sustained an $8.7 billion net loss, including a non-cash goodwill impairment charge.

Johnson expressed confidence in Lumen’s future, highlighting the critical role of connectivity as the AI demand rises.

“The rising demand of AI is requiring greater connectivity between data centers, and Lumen’s world-class fiber network and forward-thinking digital services are positioning us to help drive the AI growth wave,” she said.

Rebranding the Company

Lumen Technologies, which was previously called CenturyLink, rebranded itself and its focus to show its commitment to new technologies. One big part of this change is the creation of Quantum Fiber, a branch that offers fast internet through fiber cables. This shows how important fiber networks are for supporting new technologies like AI and quantum computing.

Fiber networks are crucial for AI because they allow for fast and reliable data transfer, which AI needs to work well. As AI technology grows, the need for strong and widespread fiber networks also increases, making Lumen Technologies an important player in this field.

Quantum computing, which can process data much faster than current computers, also depends on fiber networks. Lumen’s Quantum Fiber name reflects its future plans and the key role of fiber in both AI and quantum computing.

By focusing on AI, telecom, and quantum technologies together, Lumen Technologies is preparing for the future of technology. This specific rebrand is not just a new name but rather a plan to lead in digital transformation that first emerged during the COVID-19 pandemic. Lumen Technologies’ large fiber network will help connect and support AI and quantum computing.

AI Demand Looking Ahead

With the further evolution of AI demand, along with comes the demand for reliable and expansive fiber networks, better placing Lumen to meet those emergent needs. Partnerships and big new business deals have created a strategic, central position the company has held in the changing tech landscape. The need for low-latency, high-bandwidth networks is required more and more as diverse AI demand in applications is getting complex and data-intensive. Lumen Technologies is investing not only in expanding its infrastructure but also in new innovative solutions to ensure better performance and safety of the network to make AI run smoothly in all possible industries

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