🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Lumen stock jumps on Meta AI partnership

Published 10/21/2024, 09:10 AM
© Reuters
LUMN
-

Investing.com -- Lumen Technologies shares surged 17.8% in premarket trading on Monday following the announcement of a strategic partnership with Meta Platforms (NASDAQ:META) aimed at significantly increasing network capacity to support Meta's growing artificial intelligence (AI) infrastructure.

The new collaboration will leverage Lumen's Private Connectivity Fabric to provide Meta with enhanced interconnection and bandwidth flexibility, enabling the tech giant to meet the increasing demand for AI-driven services.

The partnership aligns with Meta's vision to advance AI capabilities for a more connected world. Meta's director of Network Investments, Alex-Handrah Aimé, said: "We are excited to work with Lumen to use this advanced network to provide scale and reliability for seamless experiences."

Ashley Haynes-Gaspar, Lumen's executive vice president and chief revenue officer, said the company is "enabling one of the biggest expansions of network capacity in our lifetime."

"We've transformed our company to meet this demand." She added that the expanded network will provide seamless and flexible connectivity as Meta's platforms integrate more AI tools and services.

The partnership highlights the growing need for infrastructure as AI technology evolves to handle complex tasks like real-time language translation and image generation.

The initiative will offer access to both existing and new fiber routes between data centers, allowing Meta to continue to meet the needs of billions of users globally.

Lumen's network solutions aim to prepare both companies for future developments in AI by supporting increasingly complex computing tasks.

The partnership comes as AI technologies take center stage across industries, underscoring the need for scalable and reliable networks.

Investors have responded positively, driving Lumen's stock higher to levels last seen in October 2022.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.