Microsoft will use Lumen Technologies’ network equipment to boost its capacity for AI workloads as the tech giant strives to meet surging demand at its data centers, the companies announced on Wednesday.
As the tech giant tries to satisfy rising demand at its data centers, Microsoft (MSFT.O) will employ Lumen Technologies’ network equipment to enhance its capacity for AI workloads, the firms announced on Wednesday. Microsoft stated in April that its capacity to profit from the rapid advancement of AI technology was being hampered by a lack of the data center infrastructure required to implement AI models. Due to its investment in ChatGPT creator OpenAI, the company has gotten an early advantage in the AI race.
To keep this advantage against Alphabet, the parent company of Google (GOOGL.O) and Amazon.com (AMZN.O), it has been investing billions of dollars in cloud infrastructure.
Lumen will use the Azure cloud capabilities of the tech giant as part of the Wednesday partnership in order to save expenses. The firms said that by moving to Azure, Lumen’s cash flow will increase by more than $20 million over the course of the following 12 months, supporting the company’s turnaround efforts after it restructured its debt in March. According to Lumen’s most recent quarterly earnings report, as of March 31, the company owed $18.59 billion in long-term debt. The company’s shares were up 3% in early trading.
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