AT&T has signed a multiyear agreement worth more than $3 billion with Corning for fiber and cable, expanding one of the largest U.S. telecommunications infrastructure programs as household, cloud and artificial-intelligence data demand accelerates.
Corning shares rose 3.3% in premarket trading following the announcement.
Fiber has become increasingly important to telecommunications companies as wireless markets mature and data consumption rises.
AT&T said the average household using its fiber service now consumes more than one terabyte of data each month — five times the level in 2016.
The company expects that figure to continue increasing.
AI applications add another layer of demand because data-intensive computing increasingly depends not only on processors and data centers but also on the high-capacity networks connecting users, enterprises and computing infrastructure.
AT&T aims to reach 60 million fiber locations by the end of the decade.
The company has also expanded its footprint through its $5.75 billion acquisition of Lumen’s fiber business and has committed more than $250 billion over five years to U.S. connectivity infrastructure.
For Corning, the agreement provides a major long-term customer for fiber and cable products as network operators increase investment in high-speed connectivity.
The transaction also illustrates a broader consequence of the AI infrastructure cycle.
Much of the investor focus has centered on semiconductors, servers and electricity. But expanding AI workloads also require greater network capacity, creating additional capital spending across fiber, optical equipment and telecommunications infrastructure.
Investors should watch the pace of AT&T’s fiber buildout, subscriber growth and Corning’s ability to translate large supply contracts into revenue and margins.
