Akamai surges as $1.8 billion cloud deal eclipses downbeat forecast
The cybersecurity and cloud company said the contract will ramp later this year even as higher memory costs weigh on margins.
- On Friday, Akamai Technologies announced a $1.8 billion, seven-year cloud infrastructure deal with a frontier model provider, marking the largest contract in company history.
- The company has been scaling its cloud infrastructure business to meet rising AI workload demand and carve a name alongside leading AI developers like OpenAI and Anthropic.
- Akamai reported first-quarter revenue rose 6% to over $1 billion, with management planning $700 million in capital expenditures this year to support the new customer win.
- Security revenue grew 11% to $590 million, driven by customer urgency to defend against AI-powered attacks, as Akamai anticipates double-digit annual revenue growth in 2027.
- The company maintains a strong GPU pipeline, though future orders may slip into next year due to component availability; management affirmed sufficient funding through existing operations and reserves.
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Akamai surges on big LLM deal as Cloudflare dims
This week was the best of times for Akamai and the worst of times for Cloudflare. On the same evening, content delivery network mainstay Cloudflare announced it was cutting about a fifth of its staff in a realignment around AI, its competitor Akamai announced a seven-year, $1.8 billion deal with a leading LLM provider that Bloomberg identified as Anthropic. Akamai CEO Tom Leighton said this was the largest deal in the company’s history and that …
Stocks making the biggest moves after hours: Akamai Technologies, Expedia, Lyft, Texas Roadhouse and more
Check out the companies making headlines after the bell : Gen Digital — The software stock popped 8% after sharing current-quarter and full-year revenue guidance that exceeded analysts’ expectations, per FactSet. Gen Digital also posted a fiscal fourth-quarter adjusted earnings and revenue beat. Airbnb — The vacation rental stock added 1%. First-quarter revenue of $2.68 billion beat the expected $2.62 billion, per LSEG. Earnings for the period m…
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