According to DCD, Verizon Business has added Amazon Web Services as its latest partner for its Verizon AI Connect product, which launched back in January. The carrier will build new long-haul, high-capacity fiber pathways specifically to connect AWS data center locations. This builds on Verizon’s existing partnerships with Google Cloud and Meta, who were already using the AI Connect offering. Verizon’s SVP Scott Lawrence emphasized that AI demands a network to match its innovation potential, while AWS’s Prasad Kalyanaraman highlighted the need for high-performance connections for reliable AI applications. The announcement comes as Verizon’s new CEO Dan Schulman recently called for a “full reboot” at the carrier and pushed AI adoption for cost efficiency.
The AI networking arms race
Here’s the thing – everyone’s talking about AI chips and models, but the real bottleneck might be moving all that data around. Verizon’s basically admitting that current networks aren’t cut out for the insane data demands of generative AI. We’re talking about moving petabytes between data centers, and traditional internet connections just don’t cut it anymore.
This partnership makes perfect sense for both sides. Verizon gets to monetize its underutilized fiber assets while AWS gets dedicated, high-performance pathways that bypass the public internet. It’s a win-win, but it also shows how hyperscalers are increasingly dependent on telcos for the last-mile (or in this case, long-haul) connectivity.
Who wins and who loses here?
Look, this definitely puts pressure on other carriers like AT&T and T-Mobile’s business units. They’re probably scrambling to announce their own AI networking partnerships right about now. But the bigger picture is that we’re seeing a massive infrastructure buildout specifically for AI workloads.
For enterprises building AI applications, this is actually good news. More dedicated AI networking means better performance and reliability for their applications. But here’s a question – will these specialized networks come with premium pricing that only the biggest players can afford? Smaller companies might get left behind if AI infrastructure becomes a luxury good.
The timing is interesting too. Verizon’s new CEO Dan Schulman pushing AI adoption right after taking over suggests we’re going to see more telcos repositioning themselves as AI infrastructure providers rather than just connectivity vendors. Basically, they’re trying to avoid becoming dumb pipes while there’s still time.
