Lumen Technologies has secured new contracts valued at $5 billion from cloud and tech companies for its networking and cyber-security solutions, driven by a surge in businesses adopting AI-driven technologies.
Among the notable deals is an agreement with tech giant Microsoft, which announced last month that it will utilize Lumen’s network equipment to enhance its capacity for AI workloads.
Lumen, known for providing secure digital connections for data centers, disclosed that it is also in active discussions with customers to secure additional sales opportunities worth $7 billion. The adoption of AI is prompting enterprises across various sectors to invest heavily in infrastructure capable of supporting AI-powered applications.
In Q1 2024, Lumen Technologies has reported revenue of $3.29 billion vs $3.738 billion in Q1 2023. Lumen Technologies has generated sales of $858 million from Large Enterprise, $486 million from Mid-Market Enterprise, $420 million from Public Sector and $730 million from Wholesale.
Major corporations are increasingly seeking high-capacity fiber, a resource becoming both 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,” stated Lumen CEO Kate Johnson.
In response to the rising demand, Lumen has established a new division, Custom Networks, to oversee its Private Connectivity Fabric solutions portfolio. This division aims to meet the increasing demand from various organizations for secure and efficient network solutions.
As the adoption of AI technologies continues to accelerate, Lumen Technologies is positioning itself as a key player in providing the necessary infrastructure and solutions to support this transformative shift in the tech landscape.
