Verizon Launches AI Connect to Power Scalable AI Workloads Amid Shifting Industry Trends

Verizon Launches AI Connect As McKinsey Predicts That 60-70% Of AI Workload Will Shift From Training To Inferencing By 2030 - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

McKinsey also outlines that there is an urgent need for low-latency connectivity, computing and security. As McKinsey highlights a significant shift in how artificial intelligence will be used in the future, Verizon Communications Inc. VZ launched AI Connect during its fourth quarter conference call, to meet the growing demand for network capacity and computational power. What Happened: Traditionally, AI models primarily focused on training, where they learn from massive datasets. Inference is the stage where the trained model is used to make predictions or decisions on new data. According to a press release, McKinsey predicts that a substantial portion of about 60% to 70% of AI workloads will transition to real-time inference by 2030. This means AI will be used for immediate, on-the-spot tasks rather than just offline analysis. Verizon aims to become a key enabler of the AI ecosystem by providing the essential connectivity and infrastructure that AI applications rely upon. McKinsey also outlines that there is an urgent need for low-latency connectivity, computing, and security at the edge beyond current demand. Low-Latency Connectivity: Real-time inference demands extremely fast data transfer. Edge computing, where processing happens closer to the data source (like a factory floor or a self-driving car), is crucial to minimize delays. Compute Power: Processing complex AI models requires significant computing power. This necessitates deploying powerful processing units directly at the edge locations. Enhanced Security: As more critical operations rely on AI at the edge, robust security measures are paramount to protect sensitive data and prevent disruptions. In essence, the shift towards real-time inference from training will drive a surge in demand for advanced edge computing infrastructure. Companies will need to invest in high-speed networks, powerful edge devices, and robust security solutions to support this evolving AI landscape. See Also: Trump's Executive Orders Fuel Tech, Weaken Energy Stocks In His First Week Why It Matters: Verizon, which reported earnings of $1.10 per share on revenue of $35.7 billion in Q4, met analysts' expectations. The telecom company has already funneled over $1 billion to leverage its existing infrastructure, said its business group CEO, Kyle Malady, during the earnings call. Google, an Alphabet Inc. GOOG GOOGL company, and Meta Platforms Inc. META have purchased capacity in Verizon's network with the intent of using it for their AI workloads. Players like Nvidia Corp. NVDA are also working with Verizon to reimagine how telecom functions can work along with AI workloads. "The bottom line is we are ready to help power the AI ecosystem. We have the assets, the expertise and the vision to deliver AI solutions at scale. By unlocking the potential of our existing assets, we can further improve the financial profile of Verizon business," said Malady. Read Next: Nvidia, Microsoft, Or Oracle: Which Stock Among These Stargate AI Project Beneficiaries Are The Least Expensive To Own? Photo courtesy: Shutterstock GOOGAlphabet Inc$193.04-4.39%Overview Rating:Good62.5%Technicals Analysis1000100Financials Analysis400100WatchlistOverviewGOOGLAlphabet Inc$190.96-4.62%METAMeta Platforms Inc$616.33-4.81%NVDANVIDIA Corp$126.40-11.4%VZVerizon Communications Inc$39.951.04%Market News and Data brought to you by Benzinga APIs

Verizon AI Connect Unleashes Next-Level Business Solutions - What's On The Cards? - Verizon Communications (NYSE:VZ)

Verizon partners with NVIDIA, Vultr, Google Cloud, and Meta for AI. Verizon Business, a division of Verizon Communications Inc VZ, has launched Verizon AI Connect, a set of solutions aimed at enabling businesses to scale their artificial intelligence operations. This new offering is designed to meet the increasing need for computational power, especially for AI tasks that demand real-time decision-making (inferencing). McKinsey predicts that by 2030, 60-70% of AI tasks will transition to real-time inference, leading to a critical demand for low-latency connectivity, computing power, and edge security. Also Read: Nvidia, Microsoft, Or Oracle: Which Stock Among These Stargate AI Project Beneficiaries Are The Least Expensive To Own? To address this, Verizon plans to assist hyperscalers, cloud providers, and global businesses by enhancing its network infrastructure, which includes 5G, fiber-optic connectivity, edge computing environments, and essential resources like power and cooling systems. "We are seeing significant demand for reliable network infrastructure that can support existing AI workloads," said Verizon Business CEO Kyle Malady. The company has entered into a new partnership with Vultr, a global provider of GPU-as-a-Service (GPUaaS) and cloud computing. Verizon has recently teamed up with NVIDIA to explore new ways of integrating GPU-powered edge platforms into its 5G private networks. Verizon and Google Cloud are working together on AI solutions for network management and anomaly detection and Verizon has expanded its partnership with Meta Platforms into network infrastructure with Verizon AI Connect. "Telecom networks are uniquely positioned to provide a distributed AI infrastructure that meets enterprise needs," said Senior Vice President of Telecom, NVIDIA, Ronnie Vasishta. "NVIDIA AI and accelerated computing, integrated with Verizon's network, allows enterprises to easily adopt AI-powered services at scale." In its fourth-quarter earnings result today, Verizon reported a 1.6% revenue growth to $35.70 billion with an adjusted EPS of $1.10, adding about 1 million postpaid mobile and broadband subscribers in the quarter. Price Action: VZ shares are trading higher by 2.12% at $40.01 at the last check Friday. Read Next: Meta's Pay-Or-Consent Policy Faces Fresh Criticism From EU Consumer Group Photo via Shutterstock. VZVerizon Communications Inc$39.861.74%Overview Rating:Good62.5%Technicals Analysis660100Financials Analysis600100WatchlistOverviewGOOGLAlphabet Inc$198.330.18%METAMeta Platforms Inc$638.070.25%NVDANVIDIA Corp$148.761.05% This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Verizon Launches AI Connect to Power Scalable AI Workloads

Integration with Verizon's 5G, edge compute, and fiber infrastructure enhances performance. Verizon Business has unveiled Verizon AI Connect, an integrated suite of solutions and products designed to enable businesses to deploy artificial intelligence (AI) workloads at scale. According to the American telco, the launch comes as demand for computational power and real-time AI decision-making surges, with McKinsey projecting that 60-70 percent of AI workloads will shift to real-time inferencing by 2030. Also Read: Responsible AI Can Unlock New Revenue Streams and Growth for Telcos: McKinsey To meet current and future demand from hyperscalers, cloud providers and global enterprises, Verizon announced on Friday that it is building to power the AI ecosystem with reimagined existing infrastructure, including its 5G network, fiber, edge compute environments and space, power, and cooling infrastructure. These assets form the backbone of Verizon AI Connect, designed to deliver low-latency connectivity and reliable compute resources. "We are seeing significant demand for reliable network infrastructure that can support existing AI workloads," said Kyle Malady, CEO of Verizon Business. "As the technology evolves, our industry leadership, best-in-class edge-to-cloud connectivity, programmable network and assets will enable us to meet these needs and accelerate innovation." In addition, Verizon announced it is expanding its AI ecosystem through key partnerships and collaborations. These include: "Verizon and Google Cloud have also collaborated on advanced AI solutions for network maintenance and anomaly detection, showcasing the power of AI to optimise network performance and predict potential issues," Verizon said. Verizon and Meta have an existing partnership across numerous products, technologies, and business units. Now, Verizon AI Connect will expand this partnership into network infrastructure, which the American telco described as a differentiator for both companies in helping to build the AI ecosystem. Also Read: Verizon and Nvidia Unveil AI-Powered Private 5G Network Solution for Enterprises "Verizon provides a robust network infrastructure that can support demanding AI workloads," said Bikash Koley, VP of Google Global Networking and Infrastructure. "With Verizon's advanced network capabilities, we can accelerate the development and deployment of AI solutions. Verizon will benefit from these solutions by leveraging Google Cloud's AI and data platform to transform its customer, employee and network experience." "As we continue to deliver critical infrastructure for our apps and technologies, we're strengthening our network with AI and the future in mind. This means partnering with Verizon to build and operate networks that support our existing services, while accelerating more intelligent and predictive capabilities that will serve the people that use our products," said Gaya Nagarajan, VP of Network Infrastructure at Meta. "Telecom networks are uniquely positioned to provide a distributed AI infrastructure that meets enterprise needs," said Ronnie Vasishta, Senior Vice President of Telecom at Nvidia. "Nvidia AI and accelerated computing, integrated with Verizon's network, allows enterprises to easily adopt AI-powered services at scale." "GPUs play a crucial role in powering AI workloads, and rapidly growing demand for real-time inference is driving the need for AI infrastructure at the edge," said J J Kardwell, CEO of Vultr. "With demand for data centers and GPU processing power outpacing supply, Verizon's connectivity infrastructure is uniquely positioned to support our growth. Through Verizon AI Connect, we can extend our global cloud footprint and bring cutting-edge AI solutions to Verizon Business' global customers."

Verizon Unveils AI Connect As Carrier Aims To Be A 'Foundational Player' In AI Ecosystem

Verizon launched its AI strategy and suite of services, AI Connect, during its fourth-quarter 2024 earnings call. The carrier's top executives also highlighted its fixed wireless, 5G and private networking wins in 2024. Verizon ripped the sheets off AI Connect, the carrier's AI strategy and suite of services for enterprises and cloud providers during its fourth-quarter 2024 earnings call Friday morning. AI Connect is designed to manage resource-intensive AI applications. Through the strategy, Verizon will introduce new tools and use its existing assets, such as the carrier's network connectivity and edge compute offerings, in new ways to service the AI revolution, whether the AI workloads are across a multi-cloud environment, deployed on a customer's premise or at the edge of the networks, said Executive Vice President and CEO of the Verizon Business Group Kyle Malady. "Customers want to control where and when AI workloads are running, and to that we are building new capabilities to give users more insight and control via new tools. Essentially, we are allowing them to program their network resources to optimize their operation as they see fit," he said. "[For] edge compute, as AI shifts from training to deep deployment, the need for distributed computing will become increasingly important for real-time decisions and predictions." Verizon already has the infrastructure to support AI Connect. The carrier's "thousands" of distributed telecom facilities already have power, space and cooling available, Malady said. The carrier is seeing increasing demand for AI Connect offers, he said, adding that Verizon currently has a funnel of more than $1 billion when leveraging its existing infrastructure. Google Cloud and Meta are among Verizon's customers as the hyperscalers have purchased capacity on Verizon's network with the intent of using it for AI workloads, Malady said. "Verizon's ability to be a foundational player in the AI ecosystem is clear," he said. "At Verizon, we see ourselves as not just participants in this AI-driven future, but as a key player enabling its success. ... The bottom line is we are ready to power AI." [Related: 5 Private Networking Companies To Watch In 2025] Verizon sustained the tempo it's seeing in mobility, fixed wireless and 5G in 2024 and that will continue into 2025, Verizon CEO Hans Vestberg said during the carrier's fourth-quarter and full-year earnings call. Verizon's private networks business continues to grow, and the carrier announced significant wins during 2024, including being selected for an IT systems modernization project from Xerox. Verizon also expanded its service from every NFL stadium in the country to individual teams and their training facilities. Verizon added nearly 1 million postpaid mobile and broadband subscribers in the fourth quarter, which marked the best quarterly result in more than a decade. Verizon's fourth-quarter 2024 total wireless service revenue of $20 billion was up 3.1 percent year over year. The carrier's full-year wireless service revenue hit $79.1 billion, which was also up 3.1 percent when compared to 2023's result. Verizon in September 2024 revealed plans to acquire Frontier Communications in an all-cash deal valued at $20 billion. The carrier hopes that the deal for Dallas-based Frontier, which is in the backyard of Verizon's largest rival, AT&T, will help win Verizon more telecommunications market share. The pending deal is expected to close in early 2026. The company also in 2024 agreed to buy a portion of U.S Cellular's low- and midband spectrum licenses for $1 billion as the fifth largest mobile network operator in the country sheds parts of its portfolio in preparation for its own deal to be acquired by T-Mobile. Total operating revenue for Verizon Business, which includes the company's Enterprise, Business Markets, and public sector and wholesale businesses, continued to trend downward, slipping 1.5 percent on revenue of $7.50 billion during the fourth quarter compared with $7.62 billion in the year-ago quarter. Enterprise and public sector continued to decline, falling 4.6 percent during fourth-quarter 2024 to $3.55 billion compared with $3.72 billion a year ago. Business Markets and other revenue rose 3.6 percent during the fourth quarter to $3.44 billion compared with $3.32 billion in the year-ago period. Wholesale revenue fell 11 percent to $518 million during fourth-quarter 2024 from $582 million one year before. Verizon Business wireless service revenue in fourth-quarter 2024 was a bright spot at $3.48 billion, an increase of 3.4 percent year over year, which the company attributed to continued strong net additions for mobility and fixed wireless access, as well as pricing actions implemented in recent quarters. Verizon Business reported 142,000 postpaid phone net additions during the quarter. For the fourth quarter ended Dec. 31, Verizon reported operating revenue of $35.68 billion, a 1.6 percent increase compared with fourth-quarter 2023's result. For the full 2024 year, Verizon's operating revenue increased slightly by 0.6 percent. The carrier's consolidated net income was $5.11 billion compared with a net loss of $2.57 billion a year ago. Verizon reported diluted earnings per share of $1.18 compared with 64 cents in fourth-quarter 2023. The company's diluted earnings per share for the full year was $4.14 compared with $2.75 in 2023. The Basking Ridge, N.J.-based carrier beat Wall Street's expectations of $35.3 billion in revenue during the fourth quarter of the year.