Raymond James said that Lumen Technologies’ (LUMN, Financials) new alliance with Meta Platforms (META, Financials) to increase Meta’s network capacity for artificial intelligence research is improbable to have a near-term influence on Lumen’s shares. “We do not believe this announcement warrants any near-term moves in the shares as it is likely already reflected in the outlook” analyst Frank Louthan said.
Maintaining a “Market Perform” rating on Lumen, Louthan said, “It is unclear at this time if there is anything incremental from what was previously known.” He underlined that this action seems to be a part of the already revealed $5 billion conduit network transaction from August, meant to improve Meta’s infrastructure.
Lumen and Meta’s cooperation is greatly increasing Meta’s network capacity to enable its AI-driven products. By the use of dedicated connections made possible by Lumen’s Private Connectivity Fabric, Meta may improve the size and dependability of its AI system. The enhanced network capacity will address Meta’s increasing requirement for fast, safe, on-demand bandwidth to enable sophisticated AI activities like real-time text-to-image translation, language processing, and immersive AI experiences across its platforms.
Using Lumen’s infrastructure to guarantee constant network performance as Meta extends its activities worldwide, the partnership highlights Meta’s aspirations to use artificial intelligence to drive its next generation of services.
This article first appeared on GuruFocus.