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DENVER and ARMONK, N.Y. - Lumen Technologies (NYSE: LUMN) and IBM (NYSE: IBM) have announced a collaboration to develop AI solutions that enhance real-time data processing at the edge of networks. This partnership aims to integrate IBM’s Watson AI products with Lumen’s Edge Cloud infrastructure, addressing challenges such as cost, latency, and security in scaling AI technologies. IBM, currently valued at $226.6 billion in market capitalization and recognized as a prominent player in the IT Services industry according to InvestingPro, has demonstrated strong market performance with a 52.75% return over the past year.
The new AI inferencing solutions will leverage Lumen’s low-latency, high-throughput infrastructure and IBM Watson technology, enabling enterprises to analyze vast amounts of data near-instantaneously. This collaboration is set to benefit sectors including financial services, healthcare, manufacturing, and retail by allowing for the development and deployment of AI models closer to the point of data generation. This proximity is expected to facilitate smarter decision-making and accelerate AI innovation while maintaining data control and security. With annual revenue of $62.83 billion and a solid financial health score rated as "GOOD" by InvestingPro, IBM brings substantial resources and stability to this partnership.
Lumen’s edge network, which boasts latency of less than 5 milliseconds, will be combined with IBM Watson to potentially enable real-time AI processing. This could mitigate the costs and risks associated with reliance on public clouds. IBM Consulting will serve as the preferred systems integrator, assisting clients in scaling their AI deployments and maximizing the use of AI capabilities.
The collaboration between Lumen and IBM is designed to turn AI potential into practical outcomes for businesses, aiming to quicken insights, reduce operational costs, and pave a smarter path to digital innovation. Joint clients will be able to pilot these solutions in real-world scenarios across various industries. One example highlighted is the enhancement of customer service for a leading retailer, with the integration of AI-driven digital assistants and visual inspection tools to improve customer data and inventory systems.
This initiative is part of Lumen’s broader strategy to unleash the world’s digital potential by connecting people, data, and applications. IBM, with its expertise in hybrid cloud and AI, along with consulting services, supports clients globally in their digital transformations. Analysts maintain a positive outlook on IBM’s future, with price targets ranging from $170 to $300 per share. For detailed analysis and additional insights about IBM’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks with expert analysis and actionable intelligence.
The information for this article is based on a press release statement.
In other recent news, IBM has announced an increase in its quarterly cash dividend to $1.68 per common share, marking the 30th consecutive year of dividend growth. This decision, set to benefit shareholders of record as of May 9, 2025, underscores IBM’s commitment to shareholder returns and financial stability. Additionally, IBM is expanding its collaboration with Oracle to integrate its AI portfolio, watsonx, with Oracle Cloud Infrastructure. This partnership aims to enhance enterprise productivity through AI-driven solutions, with initial applications focusing on human resources. IBM is also in the running, alongside Raytheon Technologies, for a contract to modernize the U.S. air traffic control system, a project highlighted by President Donald Trump as critical for efficiency and safety improvements. Moreover, IBM has expanded its partnership with Box, Inc. to accelerate AI adoption in enterprise workflows, leveraging IBM’s watsonx and Box AI to enhance content management. These developments reflect IBM’s strategic initiatives in AI and cloud services, alongside its ongoing commitment to shareholder value through consistent dividend increases.
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