MWC revealed telco pivot toward AI infrastructure
After a week of reporting by RCRTech and RCRWireless on Mobile World Congress in Barcelona, the biggest takeaway in terms of AI infrastructure is that AI is moving from the data center to the network edge, with a lot of news about the shift to “AI-native,” software-defined infrastructure designed for real-time applications like physical AI and autonomous agents. Throughout the week, it became clear that the industry is pivoting from simply using AI to optimize existing networks to rebuilding networks to embed GPU/NPU compute directly into the radio access network (RAN). For example, AT&T’s connectivity offering with AWS will prepare networks for the AI era – embedding last-mile fiber and 5G directly into the AWS environment and pushing AI into the RAN and expanding its edge ecosystem with Microsoft Azure. AT&T also announced it would work with Nvidia, Microsoft and MicroAI through its Connected AI platform for “smart manufacturing.” Korean operator SK Telecom unveiled a full-stack AI strategy, which it said would include expanding data center capacity to GW scale, collaborating with Schneider Electric and Supermicro to build modular, pre-fabricated data centers. SKT also announced a “sovereign AI package,” which integrates AIDC infrastructure and AI services tailored for industrial and enterprise use. Also important were the fiber-heavy data center interconnects, with companies like Cisco capitalizing on the east-west traffic surge for training workloads in hyperscale data centers, as covered below in “Top Stories.” Check out this week’s reporting by RCRTech and RCRWireless for news about how telecom operators are upping their AI infrastructure game – no longer sinking into the “dumb pipe” narrative that permeated the industry before the AI boom.
Susana Schwartz
Technology Editor
RCRTech
AI Infrastructure Top Stories
Cisco fiber interconnects for AI: The most urgent AI infrastructure work is with fiber-heavy data center interconnects, and Cisco is capitalizing on an east-west traffic surge, with mobile and edge networks in the AI networking stack.
AT&T, Nvidia, Microsoft & MicroAI: The companies are connecting through Connected AI, a platform for “smart manufacturing” that will connect and manage enterprise AI workloads in industrial markets, to “do more right at the edge.”
China scales chip innovation: Amid U.S. restrictions on advanced chips, China is accelerating domestic R&D efforts for open chip architectures. Omdia’s Lian Jye says, “Overall, the controls have inadvertently boosted indigenous innovation.”
AI Today: What You Need to Know
Microsoft courts residents: Microsoft resumed community outreach efforts with a 2nd data center open house for Lowell Township residents in Michigan, where it plans to build a 237-acre, $1B campus – part of its $80B AI infra goal for FY 2026
Alibaba loses AI leader: Junyang Lin is stepping down as the tech lead for Qwen, Alibaba’s main AI model, after which Alibaba Group established a task force to accelerate foundation model development.
Iran war impact on chips: The Iran war and AI demands are causing chip shortages and soaring prices, with DRAM and NAND chips seeing jumps as high as 369%. Apple announced price hikes, and others are expected to follow.
Meta’s AI in WhatsApp: Meta will allow AI rivals on WhatsApp for one year to address potential EU antitrust concerns. Meta said on Thursday that it would allow AI companies to offer their chatbots on WhatsApp via its business API.
U.S. to regulate allies’ AI chip flow?: The Trump administration is considering new regulations that would require foreign countries to either invest in U.S. data centers or provide security guarantees as a way to regulate allies’ AI chip flows.