Amid a plan to expand its fiber networks and underpin infrastructure for AI, Verizon said it has moved ahead with a multi-year, multi-billion-dollar fiber supply agreement with Corning.
Financial terms were not disclosed, but the new agreement, which extends through 2032, calls for Corning to supply more than 80 million miles of high-density optical fiber. The length of the agreement should also place Verizon at the head of the line amid the current demand for fiber for network buildouts and data center connectivity.
Verizon said the new deal will help to accelerate its plans in both areas.
On the broadband network side, Verizon is on track to end 2026 with more than 32 million fiber passings, a number that includes expansions of the Fios network along with recent transactions, including the acquisition of Eaton Fiber. On the company's Q2 call in July, CEO Dan Schulman reiterated a plan for Verizon to expand its fiber footprint to 40 million-50 million locations "over the medium term," but he did not provide a more specific timeframe.
Related:Amazon-Corning fiber deal keys on density, scaled customization for data centers
Verizon's 'AI Connect' program
Verizon also intends to tap into Corning fiber to support its "AI Connect" strategy, which is focused on direct connects to data centers. According to Schulman, that strategy took hold after discussions with hyperscalers, alternative cloud providers and enterprise service providers.
"We believe that this is just the beginning. The build-out of AI infrastructure across the United States is one of the largest capital cycles of our lifetime, and Verizon is uniquely positioned to participate in it," he said in July.
He also noted that Verizon is in the early stages of "retrofitting" its central offices into data centers to support inference edge computing, and that discussions with potential partners were underway. Those comments came as Verizon struck a dark fiber agreement with Google valued at more than $1 billion.
"The agreements we have signed are the leading edge of a strategy that will become a meaningful incremental leg of growth for Verizon," Schulman added.
Other broadband operators, including cable operators, are getting into the act. Comcast and Charter Communications, for example, are also pushing ahead with AI edge capabilities.
Getting in line
The Verizon-Corning deal builds on similar transactions that secure access to Corning's fiber output.
In June, for example, Amazon cut its own deal with Corning to bulk up on capacity for data center buildouts and a shift toward larger AI nodes and clusters. A month earlier, Corning said it would boost its US fiber production capacity by more than 50% amid an investment from Nvidia. In January, Corning and Meta announced a multiyear agreement that includes a commitment of up to $6 billion.
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