Verizon Communications Inc. (stock code: VZ) announced on Tuesday that it has partnered with NVIDIA to develop a new solution that leverages Verizon's reliable 5G private network and private Mobile Edge Computing (MEC) technology to run various artificial intelligence (AI) applications.
This new AI-driven private 5G platform stack, co-developed by Verizon and NVIDIA, is designed for plug-and-play functionality, helping third-party developers innovate while adapting to the future trends of AI computing and various AI and connectivity applications.
The platform can provide services remotely through a portable private network solution or be deployed as a permanent private network at customer locations.
Reportedly, the platform can handle compute-intensive applications, including generative AI large language models and visual language models, video streaming, broadcast management, computer vision (CV), augmented/virtual/extended reality (AR/VR/XR), autonomous mobile robots/automated guided vehicles (AMR/AGV), and the Internet of Things (IoT).
Verizon's engineers are set to demonstrate the solution in early 2025.
Srini Kalapala, Senior Vice President of Technology and Product Development at Verizon, stated that the company will leverage its private network and global industry leadership in private MEC, combined with NVIDIA's AI computing capabilities, to enable real-time AI applications that require security, ultra-low latency, and high bandwidth.
Ronnie Vasishta, Senior Vice President of Telecommunications at NVIDIA, pointed out that Verizon is integrating NVIDIA's full-stack AI platform into its new solution to run AI workloads on private 5G networks, marking an important step in helping businesses of all sizes achieve their AI business goals more quickly.
It is noteworthy that KeyBanc analyst Brandon Nispel downgraded Verizon's stock rating from "Overweight" to "Sector Weight" in October, citing that the company's quarterly earnings report fell short of expectations.
Nispel noted that Verizon's potential acquisition of Frontier Communications Parent could limit its ability to repurchase shares in the short term, while share buybacks could have yielded over 6%. He also emphasized that the slowdown in postpaid phone net additions and higher device subsidies indicate rising costs.
As of the last check on Tuesday, VZ's stock was down 0.02%, closing at $40.87.
This collaboration marks another significant advancement for Verizon and NVIDIA in the integration of AI and 5G. The solution will provide businesses with a powerful AI application platform, accelerating digital transformation across industries.
