Lumen CEO Kate Johnson: We're building the backbone of the AI economy

Lumen Technologies CEO Kate Johnson highlighted the company’s strategic growth in the AI economy, announcing $5 billion in new AI-related deals and a focus on expanding their network infrastructure to support increasing data demands. She emphasized Lumen’s long-term vision for building resilient infrastructure, which positions the company for sustained success despite historical challenges and skepticism from investors.

In a recent interview, Lumen Technologies CEO Kate Johnson discussed the company’s significant growth and strategic direction, particularly in relation to the burgeoning AI economy. Following a remarkable surge in Lumen’s stock price, which rose over 30%, Johnson highlighted the company’s recent announcements of $5 billion in new deals tied to AI, with an additional $7 billion potentially in the pipeline. This growth is attributed to partnerships with major players like Microsoft and Corning, emphasizing the increasing demand for robust connectivity and infrastructure to support AI technologies.

Johnson explained that the foundation of AI relies heavily on data, which in turn requires data centers that must be interconnected. As a networking company that manages a substantial portion of global internet traffic, Lumen is actively expanding its network to meet the evolving demands of AI. She pointed out that the existing network infrastructure is insufficient for the future needs of AI, necessitating significant upgrades and expansions to support this technological shift.

Addressing skepticism from investors regarding the profitability of investments in AI, Johnson asserted that those building the necessary infrastructure possess a clearer vision for the future. She emphasized that Lumen’s focus is not merely on short-term economic conditions but rather on creating a resilient infrastructure that will support AI for decades to come. This long-term perspective is crucial as the company positions itself to capitalize on the growing AI market.

Johnson also acknowledged the historical challenges faced by Lumen, previously known as CenturyLink, and the risk of becoming obsolete in a rapidly evolving industry. To mitigate this risk, she emphasized the importance of making strategic investments in technology and infrastructure. Lumen’s extensive fiber network, combined with a digital platform designed to enhance customer experiences, serves as a competitive advantage that differentiates the company from its past.

Finally, Johnson discussed the company’s recent earnings report, which exceeded previous guidance. The long-term deals secured by Lumen are expected to generate substantial cash flow, allowing the company to accelerate its growth initiatives. This positive outlook reflects Lumen’s commitment to restructuring and transforming its operations to better align with the demands of the AI economy, positioning the company for sustained success in the future.