Recently, Lumen Technologies, a renowned American telecommunications company, has seen a new wave of business opportunities due to the rapid advancement of AI. The company announced on Monday that it has secured $5 billion in new business orders from various enterprises. These orders are primarily to meet the growing demand for more fiber-optic network construction, which has become increasingly crucial and scarce in AI data processing.
Image source note: The image is AI-generated, with authorization from the service provider Midjourney.
Kate Johnson, CEO of Lumen Technologies, mentioned in a statement that the AI economy is transforming business operations, and more enterprises are realizing the need for robust network infrastructure to cope with unprecedented data traffic demands today and in the future. She stated, "Our partners are turning to us for help because we have the infrastructure and extensive network suitable for AI. This is just the beginning of a significant opportunity for Lumen, which will lead to one of the largest expansions in internet history."
Following these positive developments, Lumen's stock price surged approximately 93% to $5 per share at Tuesday's close. Year-to-date, the company's stock has risen by 164.6%. In July, Lumen also partnered with Microsoft to leverage Microsoft's cloud platform Azure for internal digital transformation and AI development, while Microsoft chose Lumen to provide additional network capacity for its data centers.
Meanwhile, Lumen Technologies released its second-quarter financial report on Tuesday. Although the company recorded a net loss of $49 million in the second quarter of 2024, this is a significant improvement compared to the $870 million loss in the same period last year, which also included a non-cash goodwill impairment charge. Kate Johnson emphasized that the demand for AI is driving greater connectivity between data centers, and Lumen's fiber-optic network and forward-looking digital services are helping the company play a role in the AI growth wave. She is confident about the company's future development in the context of AI demand.
Key points:
1. 💰 Lumen Technologies announces $5 billion in new business orders, primarily to meet the demand for fiber-optic network construction driven by AI.
2. 📈 The company's stock price rose 93% on Tuesday, with a year-to-date increase of 164.6%.
3. 🤝 Lumen partners with Microsoft to enhance data center network capacity and drive digital transformation and AI development.