Rackspace‑AMD AI Compute Partnership
On 16 June 2026, Rackspace Technology (NASDAQ:RXT) announced that it had signed a definitive agreement with AMD (NASDAQ:AMD) to phase‑deploy 30 MW of AMD‑based artificial‑intelligence compute infrastructure. The deal operationalises a Memorandum of Understanding first disclosed on 7 May 2026 and designates AMD as a strategic technology partner for Rackspace’s governed AI stack. Deployment will roll out across Rackspace’s global data‑center portfolio beginning in late 2026 and continuing through 2028.
The collaboration will integrate AMD Instinct GPUs – specifically the MI355X and MI350P models – together with AMD EPYC CPUs into an integrated Enterprise AI Cloud architecture. The solution is aimed at regulated enterprise workloads, with early interest expressed by healthcare providers seeking accelerated compute for clinical AI and large‑scale inference.
"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 Rackspace and AMD will allocate joint sales and marketing resources to identify and develop enterprise customers for the AMD compute‑powered infrastructure, with personnel from each firm co‑creating opportunities across regulated sectors.
The agreement accelerates delivery of four integrated capabilities: Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service, and Bare Metal AMD Instinct. The partners aim to create a new category of managed enterprise AI infrastructure that supports organisations moving from AI experimentation to agentic workflows embedded within core enterprise systems.
Following the announcement, Rackspace Technology shares surged approximately 30%, underscoring strong market approval of the strategic AI compute partnership.