Lumen secures deals worth $5 billion on AI driven demand for connectivity

(Reuters) – Telecommunications firm Lumen Technologies has secured new deals worth $5 billion from cloud and tech companies for its networking and cyber-security solutions as more businesses rush to adapt AI driven technologies.

Deals include one with tech giant Microsoft, which announced last month that it will use Lumen’s network equipment to expand its capacity for AI workloads.

Lumen, which provides secure digital connections for data centers, said on Monday that it is involved in active discussions with customers to secure sales opportunities worth an additional $7 billion.

The surge in AI adoption has led enterprises across multiple sectors to invest heavily in building infrastructure capable of supporting AI-powered applications.

Lumen said that major corporations are rushing to secure high-capacity fiber, a resource that is becoming increasingly valuable and potentially scarce, due to growing AI requirements.

“Our 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,” Lumen CEO Kate Johnson said.

Separately, Lumen said it has established new division, Custom Networks, to oversee its Private Connectivity Fabric solutions portfolio and meet increasing demand from various organizations.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Tasim Zahid)