(Reuters) -Verizon announced a deal with Amazon Web Services on Monday to build high-capacity fiber routes connecting AWS data centers, aiming to strengthen infrastructure for the next generation of artificial intelligence applications.
The partnership underscores how cloud and telecom giants are racing to meet surging data and network demands from generative AI, which requires fast, secure and resilient connections to process massive workloads.
Under the Verizon AI Connect agreement, the telecom giant will construct long-haul, low-latency fiber pathways to enhance the performance and reliability of AI workloads running on AWS cloud. The companies did not disclose financial details of the deal.
Telecom operators are increasingly viewed as critical enablers of the emerging AI-driven economy, while cloud providers are reporting brisk growth driven by AI workloads.
Last week, the three major cloud providers, Microsoft, Amazon and Alphabet, reported accelerating revenue growth, driven by demand for generative AI. They all expect significantly stronger capital spending next year.
The new agreement deepens Verizon’s long-standing strategic relationship with AWS, which already includes joint work on private mobile edge computing and Verizon’s adoption of AWS as a preferred cloud provider.
(Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar)
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