Mark Zuckerberg’s Meta is partnering with Corning in a multi-year agreement worth up to $6 billion to supply fiber-optic cables for its AI data centers, the tech giant disclosed in a Tuesday press release.
The agreement will allow Corning to expand manufacturing in North Carolina and grow its workforce, while Meta’s data centers will continue to support thousands of construction and operational jobs.
The deal comes as demand for fiber-optic cable and optical communications infrastructure is exploding amid the rapid growth of AI data centers and hyperscale computing.
Corning’s optical communications segment has seen rapid growth, with enterprise sales up 58% in the latest quarter. The company has introduced a new high-density cable, Contour, to handle the massive connectivity requirements of AI infrastructure.
Customers like Meta, NVIDIA, OpenAI, Google, Amazon, and Microsoft are driving a massive buildout of data center networks, which require far more fiber than traditional cloud infrastructure.
That strong demand has also driven a 75% gain in Corning’s stock (GLW) over the past year, with shares up nearly 8% in premarket trading on Tuesday after the Meta news, per Yahoo Finance.
Meta’s AI strategy includes 30 US data centers, with major projects in Ohio and Louisiana using Corning fiber.
Meta refocuses on AI, wearables, and mobile gaming
Meta, the name once synonymous with Mark Zuckerberg’s metaverse ambitions, is refocusing its efforts on AI and mobile technologies.
Earlier this month, the company started laying off VR-focused staff, shut down several Reality Labs studios, and put Horizon Worlds content into maintenance mode, according to CNBC.
Meta aims to redirect resources into AI development, wearable devices, and mobile content, while reshaping Horizon Worlds into a simplified, kid-friendly experience modeled on platforms like Roblox and Minecraft.
Source: https://cryptobriefing.com/meta-corning-fiber-optic-deal/
