Verizon (VZ) Stock: Partners With AWS to Build Fiber Network for AI Infrastructure

TLDR

• Verizon and AWS announced a deal to build high-capacity fiber routes connecting AWS data centers for AI applications
• The Verizon AI Connect agreement will create long-haul, low-latency fiber pathways to enhance AI workload performance
• Financial terms of the deal were not disclosed by either company
• The partnership expands Verizon’s existing relationship with AWS, which includes private mobile edge computing work
• Cloud providers recently reported strong revenue growth driven by AI demand, with plans for increased capital spending next year

Verizon announced a deal with Amazon Web Services on Monday to construct high-capacity fiber routes connecting AWS data centers. The partnership aims to support the infrastructure needs of artificial intelligence applications.

Verizon Communications Inc., VZ

The agreement, called Verizon AI Connect, will involve building new long-haul fiber pathways. These routes will link AWS data center locations to improve network performance for AI workloads.

Scott Lawrence, SVP and Chief Product Officer at Verizon Business, said AI demands a network to match its innovation potential. The deal demonstrates Verizon’s commitment to meeting the growing requirements of AI workloads.

The companies did not reveal financial details of the arrangement. The fiber infrastructure will provide low-latency connections designed to handle the data processing needs of generative AI.

Prasad Kalyanaraman, vice president of AWS Infrastructure Services, noted that generative AI requires both secure cloud infrastructure and high-performance networking. The collaboration with Verizon will enable network connections that help customers build reliable AI applications.

Expanding an Existing Partnership

This deal builds on Verizon’s existing strategic relationship with AWS. Verizon previously adopted AWS as a preferred cloud provider for its digital transformation work.

The companies have also developed private mobile edge computing solutions together. These offerings provide secure connectivity for enterprise customers across various industries.

The partnership has delivered value in sectors including manufacturing, healthcare, retail, and entertainment. It combines Verizon’s network infrastructure with AWS’s cloud services.

Cloud Provider AI Growth

Last week, major cloud providers reported accelerating revenue growth driven by AI demand. Microsoft, Amazon, and Alphabet all shared strong financial results.

These companies expect to increase capital spending next year. The investments will support the infrastructure needed for AI workloads.

Telecom operators are becoming key enablers of the AI-driven economy. Cloud providers continue to see brisk growth from generative AI applications.

The fiber pathways in the new agreement will enhance performance and reliability for AI workloads. Verizon’s network infrastructure will underpin these connections.

The solution will provide AWS with resilient network paths. This infrastructure supports customers deploying advanced AI applications at scale.

Verizon will build new fiber segments as part of this commitment. The buildout aims to enable the AI ecosystem to handle exponential data growth.

The deal was announced on November 3, 2025. It represents another step in meeting the surging data and network demands from generative AI applications.

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