Rackspace Shares Jump 30% After Securing AMD-Powered AI Infrastructure Agreement (RXT)

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Major AI Compute Partnership Boosts Rackspace Stock

Rackspace Technology (NASDAQ:RXT) shares surged 30% connected Tuesday aft the institution announced a definitive statement with AMD (NASDAQ:AMD) to deploy 30 megawatts of AI computing infrastructure powered by AMD technology.

The woody formalizes the Memorandum of Understanding the 2 companies unveiled connected May 7, 2026, and establishes AMD arsenic a cardinal strategical exertion spouse wrong Rackspace's managed artificial quality platform.

Global Deployment Scheduled Through 2028

Under the agreement, the infrastructure rollout volition instrumentality spot successful phases crossed Rackspace's worldwide information halfway web opening successful precocious 2026 and continuing done 2028.

The deployment is expected to importantly grow Rackspace's AI computing capabilities arsenic enterprises summation concern successful large-scale artificial quality applications and data-intensive workloads.

Next-Generation AMD Hardware astatine the Core

The level volition beryllium built astir AMD's latest AI and information halfway technologies, including Instinct MI355X and MI350P graphics processing units, alongside AMD EPYC cardinal processing units.

These components volition beryllium integrated into Rackspace's Enterprise AI Cloud architecture, which is designed to enactment endeavor customers operating successful highly regulated industries.

Healthcare organizations person already shown involvement successful the level for objective AI applications and large-scale inference workloads, according to the companies.

Focus connected Regulated Enterprise Markets

Rackspace said the collaboration is specifically aimed astatine organizations that necessitate secure, governed and compliant AI infrastructure.

"Enterprises successful regulated industries request AI infrastructure that is governed from the crushed up, with 1 relation accountable for concern outcomes, not a postulation of vendors each owning a piece," said Gajen Kandiah, CEO of Rackspace Technology.

The institution believes the integrated exemplary volition simplify AI deployment for businesses navigating analyzable regulatory requirements.

Joint Sales Effort to Drive Customer Adoption

Rackspace and AMD program to dedicate commercialized resources to expanding adoption of the caller AI infrastructure offering.

Teams from some companies volition enactment unneurotic to place opportunities and make relationships with endeavor customers seeking precocious AI computing capabilities.

The absorption volition beryllium connected organizations transitioning from experimental AI projects toward large-scale deployment of AI-powered workflows wrong halfway concern operations.