We recently published a list of 10 AI News That Broke the Internet. In this article, we are going to take a look at where Lumen Technologies (NYSE:LUMN) stands against other AI news that broke the Internet.
Key AI Trends Shaping Business in 2025
As AI continues to evolve, its influence on business will be undeniable, reshaping industries with smarter, more efficient solutions. Companies that embrace these trends will be better equipped to innovate, compete, and thrive in an increasingly AI-driven world. According to Oliver Parker Vice President, Global Generative AI Go-To-Market, Google Cloud, artificial intelligence is set to significantly impact businesses in 2025, driving innovation and transforming operations.
Key trends include multimodal AI, which combines text, audio, and visual data for more accurate and contextual analysis; AI agents that simplify complex workflows and support employees; improved enterprise search capabilities allowing users to access data through various media; improved customer experiences with personalized and predictive AI solutions; and stronger security systems powered by AI to detect threats and strengthen defenses. However, this progress also introduces challenges, especially in the realm of AI-driven security threats.
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AI Innovation Moves Towards Efficiency and Applications
The AI landscape is undergoing a significant shift, with a growing focus on algorithmic innovations and software applications rather than just scaling hardware. As generative AI models mature, startups and smaller companies are emerging as key players, driving efficiency and new use cases in the field.
In the discussion on CNBC, Chetan Puttagunta from Benchmark and Deirdre Bosa of CNBC focused on the evolving AI landscape. Chetan highlighted that AI innovation is shifting from large-scale hardware investments to algorithmic advancements, especially at the model layer, with entrepreneurs pushing the frontier in inference and AI applications. He mentioned that recent investment trends are moving toward smaller startups focused on algorithmic breakthroughs, as opposed to just scaling hardware.
Deirdre added that AI’s generative phase is transitioning from pre-training large models to leveraging existing models for real-world applications. This phase is characterized by a focus on software, with smaller companies gaining traction, especially with the rise of open-source models like Llama, allowing new startups to challenge established players. Chetan gives examples like Sierra, which is revolutionizing customer service by automating tasks and improving customer experiences. Both see a significant opportunity for new AI-first startups to disrupt traditional software companies.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Close-up of a technician’s hands adjusting a communication router.
Lumen Technologies, Inc. (NYSE:LUMN)
Number of Hedge Fund Holders: 26
Lumen Technologies, Inc. (NYSE:LUMN) offers technology and communications solutions, including AI-powered services like edge cloud, secure networking, and IT solutions for businesses and individuals.
On December 17, Prometheus Hyperscale and Lumen Technologies (NYSE:LUMN) partnered to support Prometheus’ energy-efficient data centers, designed to meet the increasing demands of AI, big data, and cloud computing. Lumen’s network services, including Private Connectivity Fabric and DDoS protection, will provide the high-performance, low-latency infrastructure necessary for AI workloads. Prometheus, focused on sustainability, aims to integrate renewable energy and AI-driven energy optimization at its data centers. The collaboration will help Prometheus expand its facilities in Wyoming and other western U.S. locations, with a commitment to renewable energy and carbon neutrality. Ashley Haynes-Gaspar, Lumen EVP and chief revenue officer commented:
“We’re proud to partner with Prometheus Hyperscale in supporting the next generation of sustainable AI infrastructure. Our Private Connectivity Fabric solution was designed with scalability and security to drive AI innovation while aligning with Prometheus’ ambitious sustainability goals.”
Overall, LUMN ranks 9th on our list of AI news that broke the Internet. While we acknowledge the potential of LUMN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LUMN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.