Microsoft Leverages Telstra’s Ultra-Fast Fiber to Support AI Workloads

Microsoft has continued its infrastructure expansion by partnering with Telstra to meet customer demand in Australia.

Microsoft will leverage Telstra’s new ultra-fast Intercity Fiber Network to provide increased capacity and speeds for customers using its AI services.

Telstra’s Intercity Fiber Network consists of 8,700 miles of ultra-low-latency fiber cabling that connects major Australian cities, as well as regional and remote areas.

Credit: Telstra

Microsoft will be able to leverage the fiber network to bring super fast connection speeds to customers leveraging its suite of AI services.

The company has become a foundational partner on the network, with access to the first routes.

Microsoft has also engaged with Telstra’s infrastructure arm to provide a greater understanding of how enhanced connectivity solutions within Australia would bring more AI capabilities to its customers.

The deal is an extension of the pair’s strategic partnership, signed in 2022, which is one of the largest partnerships Microsoft has penned with a telco globally.

“By extending our AI infrastructure, we can continue supporting our customers and partners as they unlock new opportunities and realize meaningful business value with AI,” said Judson Althoff, Microsoft’s chief commercial officer. “Together, [Micorosft and Telstra] are enabling AI transformation across Australia that enriches employee experiences, reinvents customer engagement, reshapes business processes and bends the curve on innovation.”

Related:Microsoft Taps Lumen to Boost AI Infrastructure Capacity

Microsoft’s Telstra deal comes as the company looks to ensure its network is ready to support an influx of demand for its AI services.

Last month Microsoft announced it’s leveraging network technologies from Lumen to enhance connectivity between its data centers, ensuring its network capacity can support AI workloads.

To further support its AI workloads, Microsoft is expanding its data centers, including building new sites in France and cloud and AI infrastructures in Malaysia, Indonesia and #Japan.

Beyond infrastructure, Telstra has purchased 21,000 licenses for Microsoft’s AI-powered productivity assistant, Copilot for Microsoft 365.

The telco said the assistant solution will help staff “adapt and thrive in an AI-fuelled future.”

Copilot for Microsoft 365 provides users with productivity tools for platforms such as Word, PowerPoint and Outlook, allowing enterprise users like Telsta to generate customer content or summarize reports.

Telstra will conduct a phased rollout of Copilot, having already conducted an earlier trial of 300 staffers, who used the AI assistant to help summarize meetings and emails.

Related:Microsoft, Meta, Google Launch New AI Connectivity Standard for Data Centers

An internal survey of early Telstra testers found staff saved one to two hours a week using the solution, with 90% saying Copilot “improved their experience at work.”

“We’re dedicated to equipping our people with the best AI technology and upskilling them to thrive in the workforce of the future,” said Vicki Brady_, Telstra’s CEO. “Giving our team access to Copilot not only gives them the space and time to spend on more meaningful tasks but also fosters a culture of continuous learning, improvement and innovation as we drive digital and AI transformation through our business.”

This story first appeared in IoT World Today's sister publication AI Business.