GoKawiilAmazon is paying Corning billions of dollars for optical fiber to power and connect its rapidly expanding U.S. data centers, the latest megadeal featuring two companies at the center of the artificial intelligence boom.
The agreement, announced Monday, will play out over several years and create 1,000 jobs at Corning's North Carolina factories, the companies said. Corning's fiber optic cable and networking solutions are becoming essential elements of AI infrastructure because they enable fast connections between data centers and the racks and chips they house.
Shares of Corning popped 4% on Monday. Amazon stock was little changed.
"Amazon's data centers power the services millions of people and businesses rely on every day," the companies said in a press release. "Corning's fiber optics are a critical piece of that infrastructure, and together, these investments help fuel the U.S. economic engine."
The deal also expands a Corning training program for fiber optic technicians in North Carolina. Amazon Web Services CEO Matt Garman said in the press release that the company's investments in the state have created over 26,000 jobs. Last year, Amazon committed to spend $10 billion on new data centers in North Carolina.