What happened
Verizon raised its forecasts for 2026 after a strong quarter for new phone customers. In the same announcement, the company said it had signed a deal worth more than $2 billion with Amazon Web Services (AWS) to support AI workloads.
Scope of the deal
Under the agreement, Verizon will provide high-capacity network connections. It will also help add computing power spread across many sites, pointing to the connectivity and distributed infrastructure that AI data centers require.
Why it matters
AI workloads demand far more bandwidth and lower latency than ordinary cloud traffic. Telecom operators moving into this space shows that AI infrastructure runs not only on chips but also through the network.
