Rackspace Technology stock surges 30% as AMD partnership brings 30 MW of AI compute power

Rackspace Technology stock surges 30% on AMD AI compute deal By Investing.com

Investing.com -- Rackspace Technology (NASDAQ:RXT) shares rose 30% Tuesday after the company signed a definitive agreement with AMD (NASDAQ:AMD) for the phased deployment of 30 MW of AMD-based AI compute infrastructure. The agreement operationalizes a Memorandum of Understanding announced May 7, 2026, and establishes AMD as a strategic technology partner for Rackspace's governed AI stack. The deployment will occur across Rackspace's global data centers beginning in late 2026 through 2028. The collaboration will incorporate AMD Instinct GPUs, including MI355X and MI350P models, along with AMD EPYC CPUs within an integrated Enterprise AI Cloud architecture. The infrastructure is designed to serve regulated enterprise workloads, with healthcare providers expressing early interest in accelerated compute for clinical AI and inference at scale. "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. Both companies plan to dedicate sales and marketing resources to identify enterprise customers for AMD compute-powered infrastructure, with personnel from each company jointly developing customer opportunities across regulated industries. The agreement will accelerate delivery of four integrated capabilities: Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service, and Bare Metal AMD Instinct. The companies aim to establish a new category of managed enterprise AI infrastructure targeting enterprises moving from AI experiments to agentic workflows within core enterprise systems.

AMD, Rackspace Strike Deal to Deploy 30MW of AI Compute

AMD has struck a deal with Rackspace Technology to deploy 30 megawatts of artificial intelligence computing power across Rackspace's data centers, expanding AMD's enterprise AI ambitions. The two companies signed an agreement for the phased deployment of an initial 30-megawatt footprint dedicated to AMD-based compute deployments across Rackspace's global data centers, starting later this year through 2028. The agreement finalizes a deal the two companies outlined in May and makes AMD a key technology partner in Rackspace's AI platform, the companies said Tuesday. The deal comes as big tech companies race to build out AI infrastructure at breakneck speed, with companies like AMD pouring billions into new chips and compute capacity while hyperscalers such as Google, Amazon and Microsoft rapidly expand their own data-center footprints. The news sent Rackspace's stock soaring in premarket trading, up 18% ahead of the morning bell at $6.96. The surge in demand for accelerated computing is being driven by generative AI, large-scale inference and emerging agentic systems, triggering a scramble for power and space to run the processes. Rackspace's planned 30-megawatt deployment of AMD hardware is pitched as meaningful capacity for regulated industries such as healthcare, where providers have already expressed early interest in accelerated compute from clinical AI, they said. The companies said they will jointly pursue enterprise customers and accelerate development of four planned offerings, which are Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service and Bare Metal AMD Instinct.