Akamai Soars 25% on $1.8 Billion AI Infrastructure Deal

CNBC reported Friday that shares of Akamai Technologies surged more than 25% in premarket trading. The Akamai AI infrastructure deal driving the move is worth $1.8 billion over seven years. A major unnamed AI company committed the funds for cloud infrastructure services.

A Landmark Contract Fuels the Rally

Akamai CEO Tom Leighton announced the agreement Thursday alongside the company’s first-quarter results. He described the counterparty only as a “leading frontier model provider,” declining to identify it publicly. The deal spans seven years and covers cloud infrastructure delivery. Leighton said Akamai’s security products are also increasingly relevant as enterprise clients navigate accelerating AI adoption. The stock has now gained roughly 37% over the past twelve months.

Q1 Numbers Back the Optimism

First-quarter revenue climbed 6% year-on-year, crossing the $1 billion threshold. The standout figure was cloud infrastructure, which grew 40% to $95 million. Security revenue rose 11% to $590 million, reflecting steady enterprise demand. Delivery and other cloud application revenue slipped 7% to $389 million. For the second quarter, the company guided revenue of between $1.08 billion and $1.1 billion. Adjusted earnings per share are expected in a range of $1.45 to $1.65.

Background: Building the Third Pillar

Akamai has historically been known for content delivery networks and cybersecurity services. The company has spent recent years constructing a third business line centred on cloud infrastructure. Chief Technology Officer Robert Blumofe told CNBC last week that this segment is the fastest-growing of the three, even though it remains the smallest by revenue. Blumofe noted that Akamai already operates an AI inference cloud, providing compute power, data storage, and the tooling required to run AI applications. The company currently runs that service across multiple locations chosen for strong network connectivity. Management plans to expand the footprint and improve resource allocation across the wider network.

What Comes Next for Akamai

The deal positions Akamai alongside larger rivals competing for AI infrastructure spending. Demand for specialised compute capacity has accelerated as frontier model developers scale training and inference workloads. Akamai’s distributed network could give it an edge in latency-sensitive inference tasks. Investors appear to be pricing in that possibility following Friday’s sharp move. The stock’s full-year gain now ranks it among the stronger performers in the cloud infrastructure peer group.

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