Verizon Inks $1 Billion Fiber Deal with Google, Eyes Multi-Billion Dollar Revenue Stream
Verizon has announced a massive fiber infrastructure deal worth over $1 billion with Alphabet Inc.'s Google. The agreement will see Verizon provide dark fiber to connect Google's data centers.
The deal is just the beginning of Verizon's push into AI infrastructure connectivity, according to CEO Dan Schulman. He described the upcoming deals as long-duration, high-quality revenue streams from some of the world's most demanding infrastructure customers.
Schulman said that Verizon's low-latency, carrier-grade transport network has become 'exactly the right asset' for connecting AI data centers, compute clusters and regions. The company is converting many of its central offices into inference edge data centers and is in discussions with partners interested in using the power-ready sites.
Verizon shares were up more than 3% in Friday's opening trade, while Alphabet's Class A shares were up about 1%. Schulman said that the company expects to announce additional deals by year-end that are expected to generate multiple billions of dollars in revenue over the next several years.