Amazon.com said Monday it entered a multibillion-dollar agreement with Corning to supply optical fiber, cable, and connectivity solutions to support the company’s growing data center footprint, as the race to build AI computing infrastructure continues to drive demand for fiber-optic components.
The investment will allow Corning to expand production and create 1,000 new jobs at its manufacturing facilities in North Carolina, the companies said. The deal adds to Amazon’s previously announced plans, disclosed last year, to invest $10 billion to expand its cloud computing infrastructure in the state.
Corning shares gained 5.7% to $187.70 on Monday. The stock has more than doubled this year. The S&P 500 closed at 7,383.74 on June 8, and the Dow Jones Industrial Average closed at 50,866.78.
Corning, known for manufacturing specialty glass, ceramics, and fiber-optic products, has seen surging demand from hyperscale cloud providers racing to build out AI infrastructure. The company, which once manufactured lightbulbs for Thomas Edison, has become a key supplier of fiber-optic cables, a critical connective component for AI data centers.
The agreement is the latest in a string of major supply contracts for Corning. Last month, the company notched a $500 million investment from Nvidia as part of a partnership to expand its fiber optics manufacturing. Earlier this year, Corning struck a deal worth up to $6 billion with Meta to supply fiber optics for that company’s data center build-out.
Companies building massive data centers face a range of challenges, including securing approval from grid operators and power companies to connect power-hungry facilities to the electrical system, according to the companies. The facilities threaten to strain the grid during periods of high electricity demand.
Corning and Amazon also plan to work together on a program aimed at training students for careers in fiber optic manufacturing and related technical roles, the companies said. The workforce development component follows a broader trend of tech companies investing in training programs for the construction and manufacturing workforce needed to support AI infrastructure expansion.