Akamai Technologies Invests in Edge AI to Drive Growth

Cloud and cybersecurity firm Akamai Technologies is investing heavily in distributed cloud infrastructure to support AI and robotics, resulting in temporary profit stagnation despite increasing revenue. The company's cloud infrastructure services grew 39% in the current quarter, and leadership expects a "hockey stick" revenue surge in the fourth quarter of 2026, which could drive double-digit growth for the entire company next year.

To fund this expansion, Akamai has suspended share buybacks and set capital expenditures at approximately 40% of revenue. The company has already secured $2.8 billion in multi-year commitments for its cloud business. Unlike hyperscalers that focus on training massive models in centralized data centers, Akamai is targeting medium-sized models and inference at the edge to reduce latency for robotics and autonomous vehicles.

Beyond infrastructure, the company reports that AI-driven cyber attacks and larger bot armies are increasing demand for its security services.