Lumen Technologies , Microsoft partner to power future of AI and enable digital transformation

Today, Lumen Technologies (LUMN) and Microsoft Corp . (NASDAQ:MSFT) announced a new strategic partnership that will use the Microsoft Cloud to further drive Lumen's digital transformation. In addition, Microsoft has chosen Lumen to expand its network capacity and capability to meet the growing demand on its datacenters due to AI.

A network for the AI era

Datacenters have become critical infrastructure that power the compute capabilities for the millions of people and organizations who rely on and trust the Microsoft Cloud. Microsoft is playing the leading role in ushering in the era of AI, offering tools and platforms like Azure OpenAI Service, Microsoft Copilot and others to help people be more creative, more productive and to help solve some of humanity's biggest challenges. As Microsoft continues to evolve and scale its ecosystem, it is turning to Lumen as a strategic supplier for its network infrastructure needs and is investing with Lumen to support its next generation of applications for Microsoft platform customers worldwide.

Lumen's Private Connectivity Fabric℠ is a custom network that includes dedicated access to existing fiber in the Lumen network, the installation of new fiber on existing and new routes, and the use of Lumen's new digital services. This AI-ready infrastructure will strengthen the connectivity capabilities between Microsoft's datacenters by providing the network capacity, performance, stability and speed that customers need as data demands increase.

"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 are focused both on the impact and opportunity for customers relative to AI today, and a generation ahead when it comes to our network infrastructure. Lumen has the network infrastructure and the digital capabilities needed to help support Azure's mission in creating a reliable and scalable platform that supports the breadth of customer workloads—from general purpose and mission-critical, to cloud-native, high-performance computing, and AI, plus what's on the horizon. Our work with Lumen is emblematic of our investments in our own cloud infrastructure, which delivers for today and for the long term to empower every person and every organization on the planet to achieve more."

"We are preparing for a future where AI is the driving force of innovation and growth, and where a powerful network infrastructure is essential for companies to thrive," said Kate Johnson, president and CEO, Lumen Technologies. "Microsoft has an ambitious vision for AI and this level of innovation requires a network that can make it 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."

Accelerating growth through innovation and partnership

Lumen has launched an enterprise-wide transformation to simplify and optimize its operations. By embracing Microsoft's cloud and AI technology, Lumen can reduce its overall technology costs, remove legacy systems and silos, improve its offerings, and create new solutions for its global customer base. Lumen will migrate and modernize its workloads to Microsoft Azure, use Microsoft Entra solutions to safeguard access and prevent identity attacks and partner with Microsoft to create and deliver new telecom industry-specific solutions. This element alone is expected to improve Lumen's cash flow by more than $20 million over the next 12 months while also improving the company's customer experience.

"Azure's advanced global infrastructure helps customers and partners quickly adapt to changing economic conditions, accelerate technology innovation, and transform their business with AI," said Chapple. "We are committed to partnering with Lumen to help deliver on their transformation goals, reimagine cloud connectivity and AI synergies, drive business growth, and help customers achieve more."

This collaboration expands upon the longstanding relationship between Lumen Technologies and Microsoft. The companies have worked together for several years, with Lumen leveraging Copilot to automate routine tasks and reduce employee workloads and enhance Microsoft Teams.