Verizon, AWS expand fiber to strengthen AI capabilities

Today, Verizon Business and Amazon Web Services (AWS) signed an agreement to construct high-capacity fiber lines that will link AWS data centers. The goal of the deal is to supply the resilient, high-capacity, low-latency network infrastructure required for the upcoming wave of innovations in artificial intelligence (AI).

According to the announcement, the construction of new, high-capacity, and long-haul fiber routes will enable AWS to continue providing and growing its high-performance, secure, and dependable cloud services. The expansion will also support clients in developing and deploying advanced AI applications at scale.

Verizon and AWS strengthen partnership for AI

The announcement stated that Verizon has made a major investment in network expansion with the addition of new fiber segments. The network buildout enables the AI ecosystem to serve the exponential data growth driven by generative AI intelligently. According to the announcement, Verizon’s network will support the Verizon AI Connect solution, providing AWS with network pathways to enhance the performance and reliability of AI workloads.

“AI will be essential to the future of business and society, driving innovation that demands a network to match. This deal with Amazon demonstrates our continued commitment to meet the growing demands of AI workloads for the businesses and developers building our future.”

–Scott Lawrence, SVP and Chief Product Officer, Verizon Business

Prasad Kalyanaraman, Vice President of AWS Infrastructure Services, commented that AWS’s partnership with Verizon builds on its longstanding commitment to provide customers with the most secure and efficient cloud infrastructure available today. Kalyanaranam added that the partnership enables high-performance network connections, allowing customers across industries to build reliable AI applications at scale.

Verizon Business acknowledged that the agreement with AWS strengthened the long-standing partnership. The firms have already formed several major partnerships, such as Verizon’s use of AWS as its strategic public cloud provider of choice for digital transformation projects. Verizon claims that these current partnerships have yielded notable benefits across various industries, including manufacturing, healthcare, retail, and entertainment.

Cloud giants accelerate spending to power AI

As the AI-driven economy gains traction, cloud providers are experiencing rapid expansion due to the increasing demand for AI workloads. Last week, three major cloud providers —Microsoft, Amazon, and Alphabet —reported faster revenue growth due to increased demand for generative AI. 

According to data compiled by LSEG, Alphabet’s total revenue for the third quarter of fiscal 2025 was $102.35 billion, compared to the analysts’ average expectation of $99.89 billion. Estimates of $2.26 were surpassed by the adjusted earnings per share of $3.10.

Amazon.com Inc. reported total net sales for the third quarter of 2025 were $180.2 billion, up 13% from $158.9 billion during the same period in 2024. Driven by the growth in the AWS business, which saw sales of $33 billion, a 20% rise from the previous year, adjusted earnings per share increased to $1.95 from $1.43.

Microsoft announced overall sales of $70.1 billion for the third quarter of fiscal 2025, a 13% year-over-year gain. Driven by growth in its cloud and AI businesses, Microsoft’s diluted profits per share increased to $3.46, up 18% from the same quarter the previous year.

On September 10, Cryptopolitan reported that the Bank of America Institute’s estimated construction investment in U.S. data centers reached a record $40 billion in June. The report claimed that the rise is a result of the explosive growth of machine learning and artificial intelligence (AI) technologies, which demand enormous processing power. The report emphasized that high-profile tech firms have increased their spending on digital infrastructure as a result of the adoption of AI.

Microsoft reported spending $35 billion during the third quarter, which was 74% higher than the previous year and $5 billion higher than analysts had predicted. According to Microsoft executives, spending is expected to approach $140 billion in the upcoming year.

The CEO of Microsoft, Satya Nadella, revealed that the Windows maker is developing cloud systems at “planet scale.” He added that the firm plans to increase the size of its data center operations in the next two years.

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