"The initiative, internally called Verizon AI Connect, centers on repurposing those assets rather than selling them. According to Skiadas, the combination of facilities and fiber positions Verizon to serve hyperscalers-large tech companies requiring custom AI infrastructure-with unique value. The company might have to spend some capital on its facilities, but it already has many of the assets in place to deliver these workloads at scale, he said."
""This is probably a medium- to long-term exercise," he noted, "because every deal is highly customized." Skiadas added: "But I like what I'm seeing from a sales funnel perspective. We talked about a billion-dollar sales funnel at the beginning of the year, and that's actually doubled in terms of potential opportunity." While some smaller agreements could materialize this year, larger deals will take more time due to the complexity of building fiber or upgrading facilities, Skiadas explained."
Verizon is testing ways to leverage existing central offices, largely freed as copper networks are replaced by fiber, to run AI processing at the edge. Fiber takes up far less space than copper, leaving facilities with the space, power and cooling required for large-scale AI workloads. Verizon AI Connect focuses on repurposing those assets rather than selling them, positioning the company to serve hyperscalers with custom AI infrastructure. Some capital may be needed to upgrade sites or build fiber. Initial demand has produced a rapidly expanding sales funnel; smaller deals could come sooner, larger customized agreements will take longer to complete.
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