Microsoft and Lumen Technologies have announced a strategic partnership to address the lack of data centres, improve AI capabilities, and reduce costs.
The two companies announced on Wednesday that Microsoft will use Lumen Technologies’ network equipment to increase the capabilities of its AI infrastructure.
Microsoft stated in April that these deficiencies in infrastructure were impeding its ability to fully capitalise on the AI technology boom.
Microsoft has been aggressively investing in improving its cloud capabilities to counter this, most notably by making large financial commitments to cloud infrastructure.
Microsoft made these expenditures as part of their effort to stay ahead of the AI competition, especially in light of their competition from Google’s parent company, Alphabet, and Amazon.com.
Newsng understands that this partnership highlights how interconnected the tech sector is becoming.
Microsoft’s position against key competitors is strengthened as it develops its AI and cloud capabilities, potentially increasing its market value.
Lumen’s strategic shift to Azure is more than just a cost-cutting tactic; it might comfort investors about the company’s long-term survival and debt relief.
Commenting on the outcome of the partnership, Kate Johnson, president and CEO, of Lumen Technologies, said: “Microsoft has an ambitious vision for AI and this level of innovation requires a network that can make it a reality.
“Lumen’s expansive network meets this challenge, with unique routes, unmatched coverage, and a digital platform built to give companies the flexibility, access and security they need to create an AI-enabled world.”
Experts claimed that the partnership with Lumen helps Lumen cut expenses while also increasing Microsoft’s ability to manage AI workloads.
“AI is reshaping our daily lives and fundamentally changing how businesses operate,” said Erin Chapple, corporate vice president of Azure Core Product and Design, Microsoft.
We earlier reported that Microsoft has been subject to a comprehensive regulatory investigation in the United Kingdom following the hiring of the main staff of Inflection AI, an OpenAI competitor based in the United States that Microsoft had previously invested in.
