- Amazon signs agreement with Corning to purchase fiber optic cables and network components
- The move is expected to create hundreds of construction jobs, in addition to the 1,000 created at Corning’s North Carolina facilities.
- The move comes as Amazon announces an investment of more than $20 billion in the state to create 26,000 jobs.
Amazon announced a multi-year, multibillion-dollar deal with Corning to meet its data center needs as it capitalizes on an AI-driven boom in demand.
The move, which creates manufacturing and construction jobs, also expands Corning’s fiber optic technician training program at Catawba Valley Community College, signaling increased demand for technical workers in the fiber optic industry.
Amazon has already committed to investing $10 billion in cloud infrastructure in North Carolina, investing more than $20 billion in the state in projects that it says have directly contributed to the creation of 26,000 jobs.
Amazon’s Glass Obsession: Bandwidth is Key
The deal comes weeks after Amazon Web Services (AWS) introduced the Random Network Graph architecture, a fiber-optic network design that arranges cables in a semi-random configuration to increase bandwidth and reliability between servers.
The design significantly increases demand for fiber optic cables and connectivity while solving one of the biggest challenges in AI as models and data centers grow: reliable bandwidth.
Corning is an ideal partner for most AI data center companies looking to develop infrastructure: it is one of the largest fiber optic manufacturers in the world, is a US-based company, and offers cutting-edge fiber optic technology in a single package. The 175-year-old glass company is up 94.72% year-to-date (YTD), as investors continue to seek indirect beneficiaries of the AI trade amid flat spending.
Amazon’s decision is not isolated, although it represents a multibillion-dollar investment in fiber optics for Corning. Nvidia has already been the first, supporting the construction of 3 new optical equipment facilities and investing up to $3.2 billion in the company’s stock to fund what it sees as a “10-fold increase” in its U.S.-based optical connectivity manufacturing capacity.
“Amazon’s investments in North Carolina have created more than 26,000 jobs across the state. This multi-billion dollar deal with Corning continues that commitment, channeling investment into the U.S. manufacturing sector and creating 1,000 new jobs at their facilities near our data centers,” said Matt Garman, CEO of AWS.
“We also partner to train North Carolinians for highly skilled positions in fiber optics and fusion splicing. These long-term investments create long-term careers and real opportunities in the communities where we operate.
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