California (Business Emerge), July 25: In a strategic move to bolster its AI capabilities, Microsoft has partnered with Lumen Technologies to utilize Lumen’s network equipment, aiming to expand AI workload capacity across its data centers. This collaboration is set to address the increasing demand for advanced AI services.
The partnership will see Lumen leveraging Microsoft’s Azure cloud services, which is expected to significantly improve Lumen’s financial health. By shifting to Azure, Lumen anticipates an enhancement in cash flow exceeding $20 million within the next year. This financial boost aligns with Lumen’s ongoing efforts to recover from its recent debt restructuring.
Microsoft, a frontrunner in the AI sector due to its significant investment in OpenAI, has been investing heavily in cloud infrastructure to maintain its competitive advantage over major players like Alphabet and Amazon. The company’s data center infrastructure shortage, identified in April, has been a major obstacle in fully capitalizing on the booming AI technology sector.
With shares of Lumen rising by 3% following the announcement, this partnership is expected to provide substantial benefits to both companies. As of the end of March, Lumen reported $18.59 billion in long-term debt, according to its latest earnings report.