Meta Partners with Lumen Technologies to Boost Network Capacity for AI Development

Meta and Lumen Partner to Expand Network Capacity for AI Development

Lumen's Private Connectivity Fabric offers AI-ready capacity, including new fiber routes. Meta is teaming up with Lumen Technologies to significantly increase its network capacity and drive the company's AI (Artificial Intelligence) ambitions. The expanded network will provide dedicated interconnection for Meta's infrastructure, strengthening and enhancing the company's ability to lead in AI development. "This increase in capability is another differentiator that will fuel Meta's vision to advance AI for a more connected world," the companies said in a joint statement on Monday. Also Read: Meta Unveils New AI Models and Tools to Drive Innovation "With the growing interest in AI, preparing for the future means investing in a reliable network," Lumen said, noting that the partnership will provide Meta with enhanced interconnection and secure, on-demand bandwidth, enabling seamless scalability for its complex computing needs and serving billions of people every day. "We're enabling one of the biggest expansions of network capacity in our lifetime," said Ashley Haynes-Gaspar, Lumen's EVP and chief revenue officer. "We've transformed our company to meet this demand. As Meta's customers use more AI services across its platforms, we're helping provide Meta with a seamless, effortless, and flexible network that will meet its growing needs." "Our AI tools are performing increasingly more complex tasks including enabling conversations in a variety of languages and translating text to images in real time, while helping people interact with the world around them in new, immersive ways. We are excited to work with Lumen to use this advanced network to provide scale and reliability for seamless experiences," said Alex-Handrah Aime, director of Meta's Network Investments. Also Read: Nokia Integrates AI into Altiplano Access Controller for Enhanced Network Automation Lumen stated that its Private Connectivity Fabric will deliver network capacity for an AI-ready world. This capacity includes dedicated access to existing fiber routes and new routes between data centers. Lumen added that as a trusted network for AI, it uses the scale of its network to help companies realise AI's full potential.

Lumen stock jumps on Meta AI partnership By Investing.com

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 (LON:NETW) 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.

Lumen And Meta Join Forces To Boost AI With Flexible, On-Demand Network Solutions - Lumen Technologies (NYSE:LUMN)

The partnership provides Meta with secure, flexible, on-demand bandwidth to support its growing AI ambitions. Lumen Technologies, Inc. LUMN shares are trading higher on Monday after the company announced it is partnering with Meta Platforms, Inc. META to significantly increase Meta's network capacity and help drive its AI ambitions. Lumen's partnership offers Meta enhanced flexibility with secure, on-demand bandwidth, supporting its complex computing requirements and enabling it to serve billions daily. Ashley Haynes-Gaspar, Lumen's EVP and chief revenue officer, said, "We've transformed our company to meet this demand. As Meta's customers use more AI services across its platforms, we're helping provide Meta with a seamless, effortless, and flexible network that will meet its growing needs." Lumen Technologies said its Private Connectivity Fabric enables long-term network capacity for Meta's AI. Alex-Handrah Aimé, director of Meta's Network Investments stated, "Our AI tools are performing increasingly more complex tasks including enabling conversations in a variety of languages and translating text to images in real time, while helping people interact with the world around them in new, immersive ways." Read: Chinese Hackers Breach AT&T, Verizon Networks In Major Wiretap Data Theft Putting US National Security At Risk: Report Lumen will report third quarter 2024 results on November 5, 2024. Investors can gain exposure to the stock via Invesco S&P SmallCap Utilities & Communication Services ETF PSCU and First Trust Cloud Computing ETF SKYY. Price Action: LUMN shares are up 9.50% at $7.38 at the last check Monday. Image via Shutterstock Read Next: Lawmakers Demand Answers From AT&T, Verizon, And Lumen Over Chinese Hack Market News and Data brought to you by Benzinga APIs

Lumen Technologies Shares Rise 9% on Meta Partnership

Shares of Lumen Technologies rose after it said it would partner with Meta to power the tech company's artificial intelligence network. The telecommunications company's stock climbed 9% to $7.35 Monday morning. Shares have more than quadrupled year to date, thanks to AI-related contracts. Denver-based Lumen said Monday morning it would partner with Meta to increase the social media company's AI network capacity. Meta will have dedicated access to existing fiber routes in Lumen's Private Connectivity FabricSM network, as well as new routes between data centers, Lumen said. Lumen announced a similar partnership with Microsoft in July. The company said in August that it had secured AI contracts worth $5 billion, and was in discussions for another $7 billion in sales. "We're enabling one of the biggest expansions of network capacity in our lifetime," said Lumen's Chief Revenue Officer Ashley Haynes-Gaspar.

Lumen shares hold Market Perform rating post Meta deal By Investing.com

On Monday, Raymond James maintained a Market Perform rating on shares of Lumen Technologies (NYSE:LUMN) following the company's announcement of a partnership with Meta Platforms (NASDAQ:META) to boost the latter's network capacity for future AI applications. The collaboration is seen as part of a previously disclosed $5 billion conduit network deal involving major tech firms. Lumen Technologies revealed its partnership with Meta Platforms, aimed at expanding Meta's network capacity. This move is intended to support the development of advanced AI applications. The announcement is believed to be connected to an earlier $5 billion network infrastructure agreement announced in August, which reportedly includes Microsoft (NASDAQ:MSFT), Meta, and Amazon (NASDAQ:AMZN) as the main participants. The analyst from Raymond James noted that the specifics of the partnership might have already been anticipated by the market, referencing the earlier announcement. The recent performance of Lumen's stock is thought to be a reaction to these developments. However, the analyst expressed that the current announcement does not justify any immediate changes in the stock's rating, suggesting that the potential impacts are likely factored into the current market expectations. Investors and analysts are advised to look forward to Lumen's earnings call scheduled for November 5, where additional details regarding the partnership and its implications for the company's future may be discussed. The call is expected to provide further insights into the company's strategic direction and operational progress. In summary, Lumen Technologies' partnership with Meta Platforms to enhance network capacity for AI advancements is seen as an extension of a previously known agreement. Raymond James has chosen not to alter its rating of Lumen's stock at this time, indicating a wait-and-see approach until more information becomes available in the upcoming earnings discussion. In other recent news, Lumen Technologies has been involved in significant developments. The company has announced a partnership with Meta to enhance Meta's network capacity, a move expected to boost the company's AI capabilities. This collaboration will provide Meta with a dedicated interconnection to support its AI infrastructure initiatives, making it one of the most significant network capacity expansions in recent times. Meanwhile, Lumen Technologies, along with AT&T and Verizon (NYSE:VZ), is under investigation by U.S. lawmakers following allegations of Chinese hackers infiltrating their networks. The hackers, identified as "Salt Typhoon," reportedly compromised systems used for court-authorized wiretapping, potentially accessing critical infrastructure for several months. In the financial sphere, BofA Securities has maintained its underperform rating on Lumen Technologies ahead of its third-quarter earnings, maintaining a steady price target of $2.00. The company's $5 billion fiber construction project and potential divestiture of the Mass Market segment are among the key investor concerns. Wells Fargo (NYSE:WFC) has downgraded Lumen's stock from Equal Weight to Underweight, citing concerns over the company's substantial debt exceeding $19 billion in long-term maturities. The firm also revised its price target for Lumen to $4.00. These are recent developments involving Lumen Technologies, indicating a transformative period for the company. Despite facing revenue declines, the company's strategic focus on AI and private connectivity fabric, along with its commitment to cost savings and operational efficiency, suggests a forward-looking approach to overcoming current financial challenges. Lumen Technologies' recent partnership announcement with Meta Platforms aligns with several key metrics and trends highlighted by InvestingPro. The company's market cap stands at $7.07 billion, reflecting its significant position in the telecommunications infrastructure sector. InvestingPro Tips indicate that Lumen has seen a "significant return over the last week" and a "strong return over the last three months," with data showing a 10.86% 1-week price total return and an impressive 388.41% 3-month price total return. These figures suggest that the market has been reacting positively to recent developments, including the partnership announcement. However, it's important to note that analysts anticipate a sales decline in the current year, with revenue growth at -12.01% over the last twelve months. This context makes the Meta partnership particularly crucial for Lumen's future growth prospects. The company's high price volatility, as mentioned in the InvestingPro Tips, is evident in its substantial price movements. With a 414.5% 6-month price total return, investors should be prepared for potential fluctuations as the market continues to assess the impact of the Meta partnership and other strategic initiatives. For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Lumen Technologies, providing a deeper understanding of the company's financial health and market position.

Why Lumen Stock Is Falling After Surging Early in Today's Trading | The Motley Fool

Lumen stock got off to a red-hot start thanks to AI news today, but it hasn't held on to those early gains. Lumen Technologies (LUMN -2.15%) stock is surging in today's trading. The telecommunications company's share price was up down 2.5% as of 2:30 p.m. ET, after having been up as much as 15.4% earlier in the day's trading. Lumen stock is making big gains following an announcement that the company has signed a new deal with Meta Platforms (META -0.68%) to provide network infrastructure and services. Through the new partnership, Lumen will be providing fiber internet services to increase Meta's network capacity and support its artificial intelligence (AI) initiatives. In addition to providing Meta with access to existing fiber routes, Lumen will also be providing new fiber routes between data centers. The deal with Meta Platforms comes on the heels of contracts that Lumen landed to support Microsoft's AI projects earlier this year, and the pullback for the stock after initially posting big gains likely stems from investors of whether the Meta deal was a new contract win or one that was previously mentioned in less concrete terms. Lumen stock is now up roughly 259% across this year's trading. Most of the explosive growth for the telecom company's share price has been driven by excitement surrounding the company's opportunity to provide networking services for data center and AI applications. While no details were given about the value of Lumen's new partnership with Meta were given, the company's previously announced deal with Microsoft suggests that the new deal could be a substantial sales driver for the telecom company. Following the announcement of its deal with Microsoft, Lumen announced that it had secured $5 billion in new business thanks to demand connected to AI. The telecom also said at the time that it was in discussions to provide additional infrastructures and services potentially worth as much as $7 billion in new deal value. Landing substantial new deals is undoubtedly a bullish development for Lumen's business, and the new contracts being connected to AI likely does even more to create excitement for the company's stock. On the other hand, investors should keep in mind that there's a lot about the specifics of these new deals that is still unknown -- and the telecom still has a massive debt load to overcome.