Lumen Technologies Gets $5 Billion in New Business on AI Boom

Shares of Lumen Technologies (LUMN) skyrocketed Tuesday, a day after the telecom provider announced it had secured $5 billion in new business because of soaring demand for artificial intelligence (AI) connectivity products.

The company added that the demand is so great that it’s in active discussions with customers to pick up another $7 billion in AI sales opportunities.

Lumen explained that large firms in all industries are “seeking to secure fiber capacity quickly, as this resource becomes increasingly valuable and potentially limited, due to booming AI needs.”

Lumen Strikes Deal With Corning for Cable

The company said that it is responding to the increase by more than doubling its intercity network miles over the next five years, and providing access to “a significant amount of installed dark fiber.” In addition, Lumen has struck a deal with Corning (GLW) to be the fiber optic giant’s preferred partner for its next-generation, fiber-dense cable designed to handle the increased data procession required by AI.  

Lumen Chief Executive Officer (CEO) Kate Johnson pointed out that the AI economy is changing business operations, and “companies are recognizing they need powerful network infrastructure to manage the unprecedented data flows today and the demand in the future.” She called what’s happening “just the beginning of a significant opportunity for Lumen, one that will lead to one of the largest expansions of the internet ever.”

Lumen Technologies shares soared 54% to $4.01 as of 10:05 a.m. ET Tuesday and have more than doubled year-to-date.