Major AI Compute Partnership Boosts Rackspace Stock Rackspace Technology (NASDAQ:RXT) shares surged 30% on Tuesday after the company announced a definitive agreement with AMD (NASDAQ:AMD) to deploy 30 megawatts of AI computing infrastructure powered by AMD technology.
The deal formalizes the Memorandum of Understanding the two companies unveiled on May 7, 2026, and establishes AMD as a key strategic technology partner within Rackspace’s managed artificial intelligence platform
Global Deployment Scheduled Through 2028 Under the agreement, the infrastructure rollout will take place in phases across Rackspace’s worldwide data center network beginning in late 2026 and continuing through 2028. The deployment is expected to significantly expand Rackspace’s AI computing capabilities as enterprises increase investment in large-scale artificial intelligence applications and data-intensive workloads. Next-Generation AMD Hardware at the Core The platform will be built around AMD’s latest AI and data center technologies, including Instinct MI355X and MI350P graphics processing units, alongside AMD EPYC central processing units.
These components will be integrated into Rackspace’s Enterprise AI Cloud architecture, which is designed to support enterprise customers operating in highly regulated industries. Healthcare organizations have already shown interest in the platform for clinical AI applications and large-scale inference workloads, according to the companies. Focus on Regulated Enterprise Markets Rackspace said the collaboration is specifically aimed at organizations that require secure, governed and compliant AI infrastructure. “Enterprises in regulated industries need AI infrastructure that is governed from the ground up, with one operator accountable for business outcomes, not a collection of vendors each owning a piece,” said Gajen Kandiah, CEO of Rackspace Technology.