Lumen, Microsoft forge deal to drive digital transformation, AI initiatives

Lumen Technologies (NYSE:LUMN) has forged a strategic deal with Microsoft (NASDAQ:MSFT) to support digital transformation and drive AI initiatives across its organization.

Lumen (LUMN) has launched an enterprise-wide transformation to simplify and optimize its operations. As part of the partnership, the telecommunications company 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 (LUMN) cash flow by more than $20M over the next 12 months, while also elevating the company’s customer experience.

In addition, Microsoft (MSFT) has selected Lumen (LUMN) as a strategic supplier for its network infrastructure needs. Lumen’s Private Connectivity Fabric will enable the tech firm to expand its network capacity to support rising demand on its datacenters due to AI.

Shares of Lumen Technologies (LUMN) were up 4% premarket, while MSFT was down over 1%.