Home / Technology / Rackspace Stock Jumps on Massive AI Partnership
Rackspace Stock Jumps on Massive AI Partnership
16 Jun
Summary
- Rackspace stock surged 30% following an AI compute infrastructure deal with AMD.
- The partnership involves deploying 30 megawatts of AMD-powered AI computing infrastructure.
- The deployment will span Rackspace's global data centers through 2028.
Rackspace Technology's stock saw a substantial 30% jump on Tuesday after finalizing a significant agreement with AMD. This definitive partnership outlines the deployment of 30 megawatts of AI computing infrastructure, leveraging AMD's cutting-edge technology.
The collaboration formalizes a previous memorandum of understanding and positions AMD as a pivotal strategic ally for Rackspace's managed artificial intelligence platform. The infrastructure rollout is slated to occur in stages, commencing in late 2026 and extending through 2028 across Rackspace's global data center network.
This expansion is anticipated to bolster Rackspace's AI computing capacity, meeting the escalating enterprise investments in extensive AI applications and demanding data workloads. The platform will feature AMD's latest AI and data center technologies, including Instinct MI355X and MI350P GPUs, and EPYC CPUs.
Rackspace is specifically targeting regulated markets, emphasizing secure, governed, and compliant AI infrastructure. The company aims to simplify AI deployment for businesses navigating complex regulatory landscapes. Joint sales efforts are planned to accelerate customer adoption, focusing on organizations transitioning from experimental AI projects to large-scale operational workflows.
