AT&T is accelerating its artificial intelligence and enterprise connectivity strategy with a combination of AI cost optimization, high-performance networking, and advanced wireless infrastructure.
The telecom operator has introduced an AI tokenomics framework that has reduced AI inference costs by up to 90 percent, strengthened its enterprise networking portfolio with industry recognition, and showcased its wireless and fiber capabilities during the MLS All-Star Week in Charlotte.
Capex
AT&T accelerated network investments during the second quarter of 2026, with capital expenditures rising to $5.70 billion from $4.88 billion in the first quarter of 2026 and $4.90 billion in the second quarter of 2025. Total capital investment, which includes vendor financing, increased to $6.13 billion compared with $5.09 billion in the previous quarter and $5.12 billion a year earlier. During the first half of 2026, AT&T invested $10.58 billion in capital expenditures and $11.22 billion in capital investment.
Churn
AT&T improved customer retention across its wireless business during the second quarter of 2026. Overall phone churn declined to 1.12 percent from 1.20 percent in the first quarter of 2026 and 1.17 percent in the second quarter of 2025. Postpaid phone churn, a key industry metric, improved to 0.86 percent, compared with 0.89 percent in the previous quarter and 0.87 percent a year earlier. Prepaid phone churn also improved to 2.30 percent from 2.62 percent in the first quarter of 2026 and 2.43 percent in the second quarter of 2025. The stronger retention helped AT&T deliver 432,000 postpaid phone net additions and 549,000 total wireless net additions during the quarter.
AT&T Optimizes AI Economics with 45 Billion Daily Tokens
AT&T said it now processes an average of 45 billion AI tokens every day, making AI inference efficiency a strategic priority as enterprise adoption of generative AI accelerates.
To control operating costs without compromising performance, the company has developed an AI Gateway that intelligently routes AI workloads to the most suitable large language model based on cost, latency, complexity, and performance. Instead of relying exclusively on expensive frontier AI models, the platform automatically assigns routine tasks to smaller models while reserving advanced models for more complex requests.
According to AT&T, this AI tokenomics strategy has lowered AI inference expenses by up to 90 percent, delivering millions of dollars in savings while maintaining application quality. The AI Gateway can also switch between models during multi-turn conversations to further improve efficiency.
The operator also unveiled OTel 2.0, an open-source telecom-focused large language model designed for network operations and enterprise applications. OTel 2.0 was trained using more than 400 billion training tokens, while the complete training process consumed over 1 trillion tokens using Microsoft Foundry Managed Compute and AMD GPUs. The model also incorporates GSMA telecom datasets to improve its understanding of telecommunications-specific use cases.
AT&T said its Models as a Service (ModaaS) framework combines AI Gateway, specialized AI models, governance, and security capabilities to support sovereign AI deployments, enabling enterprises to retain greater control over sensitive data and AI operations.
AT&T Expands AI-Ready Enterprise Connectivity
AT&T Business continues to strengthen the networking foundation required for AI-driven enterprises. The company was recognized by Frost & Sullivan as a Visionary Leader in North American Dedicated Internet Access, North American Ethernet Services, and Global Enterprise Network Services.
The recognition reflects AT&T’s focus on providing secure, high-capacity connectivity for enterprises deploying cloud services, AI workloads, and distributed digital applications.
AT&T’s global infrastructure now spans more than 1.4 million fiber route miles and delivers connectivity across approximately 200 countries and territories. The company is investing in low-latency, high-bandwidth networks that connect enterprise campuses, branch offices, hyperscalers, cloud platforms, and AI infrastructure.
Its Dedicated Internet Access services now offer speeds of up to 1 Tbps, while the Ethernet portfolio includes AT&T Switched Ethernet on Demand, enabling enterprises to dynamically scale bandwidth, manage services digitally, and establish direct connectivity with cloud and colocation providers.
AT&T also highlighted AT&T Dynamic Defense, which integrates networking and cybersecurity capabilities to help enterprises secure increasingly complex AI and cloud environments.
Wireless and Fiber Networks Power MLS All-Star Week
AT&T also demonstrated the capabilities of its wireless and fiber networks during MLS All-Star Week in Charlotte.
The company is the presenting sponsor of the MLS All-Star Skills Challenge on July 28 and is supporting the MLS All-Star Game on July 29, featuring the MLS All-Stars against the Liga MX All-Stars.
During the MLS Soccer Celebration held at Romare Bearden Park on July 25–26, fans participated in the AT&T Shooting Challenge, where they received real-time performance statistics and created digital highlight content powered by AT&T’s connectivity platform.
AT&T also expanded its community engagement through youth soccer initiatives, equipment donations, player appearances, and distributed 20,000 co-branded AT&T and MLS shirts during the All-Star Game.
The operator said Turbo Live by AT&T, together with its wireless and fiber infrastructure, enabled fans to stream content, upload videos, and remain connected throughout the event.
AI Infrastructure Becomes the Next Telecom Battleground
AT&T’s latest initiatives highlight how telecom operators are moving beyond AI experimentation toward large-scale commercial deployment focused on operational efficiency, secure networking, and AI-ready infrastructure.
By processing 45 billion AI tokens daily, reducing inference costs by up to 90 percent, training AI models with over 1 trillion tokens, operating more than 1.4 million fiber route miles, providing connectivity across approximately 200 countries and territories, delivering internet speeds of up to 1 Tbps, and supporting fan engagement with 20,000 branded shirts, AT&T is positioning itself as a provider of both AI infrastructure and intelligent connectivity for enterprises and consumers.
FASNA SHABEER
