Rackspace and AMD Announce Major AI Infrastructure Partnership Deal
Rackspace Technology shares surged up to 30% on June 16, 2026, after finalizing a definitive agreement with AMD to deploy 30 megawatts of AI computing infrastructure across global data centers from late 2026 through 2028. The deal uses AMD’s Instinct GPUs and EPYC CPUs, targeting regulated industries like healthcare. Rackspace also announced a 15% workforce reduction to refocus on AI services. The partnership positions both companies to capture growing enterprise AI demand, though execution risks remain.
Cross-source coverage
Wire timeline
AMD and Rackspace Team Up on 30 MW AI Compute Agreement
On June 16, 2026, AMD and Rackspace Technology signed a definitive agreement to deploy 30 megawatts of AMD-powered AI compute across Rackspace's global data centers, beginning late 2026 through 2028. The deal positions AMD as the core chip provider for Rackspace's governed AI stack, targeting regulated industries like finance and healthcare. AMD's Q1 2026 data center revenue hit a record $5.8 billion, up 57% YoY, while Rackspace shares surged 292% over three months. The partnership aims to meet growing demand for AI systems that comply with strict industry standards. Analysts remain bullish on AMD (consensus Strong Buy) despite its high forward P/E of 82.52.
Yahoo FinanceAMD Deal Sparks Rackspace Stock Surge as Company Cuts Jobs
Rackspace Technology announced a definitive agreement with AMD to deploy an initial 30 MW of dedicated AMD-based compute capacity across its global data centers, starting in late 2026 and continuing through 2028. The deal positions Rackspace as a governed AI infrastructure operator for regulated industries like healthcare, which have been slow to adopt AI due to compliance constraints. Shares surged about 27% premarket following the announcement. Concurrently, Rackspace disclosed a workforce realignment involving the termination of approximately 15% of its global workforce, with one-time expenses estimated at $14 million to $19 million. The company had previously signed a memorandum of understanding with AMD in May 2026, which had already driven a 55% stock surge. Analysts note that while the framework is significant, execution risk remains as each deployment requires a separate commercial agreement.
Yahoo FinanceWhy Rackspace Rallied Today
Rackspace (NASDAQ: RXT) shares surged up to 21.2% on Tuesday following an announcement of an expanded partnership with Advanced Micro Devices (AMD) to deploy 30 MW of compute capacity for enterprise customers in highly regulated industries like healthcare. The deployment will use AMD Instinct GPUs and EPYC CPUs, starting in late 2026 through 2028. Additionally, Rackspace announced a 15% workforce reduction, expected to save $75-85 million annually, as it refocuses on AI services and deprioritizes legacy products. Despite the rally, the stock settled at a 5% gain amid a broader semiconductor sector selloff. Rackspace has risen 543% in 2026 but remains below its 2020 IPO price of $21. The article notes significant risks including debt and past underperformance, characterizing the stock as a speculative play.
Yahoo FinanceRXT Stock Spikes as Rackspace Strikes a Deal With AMD
Rackspace Technology (RXT) stock surged over 21% on Tuesday after announcing a major hardware partnership with Advanced Micro Devices (AMD). The multi-year deal involves a phased rollout of a 30-megawatt computing footprint across Rackspace's global data centers, utilizing AMD's Instinct GPUs and EPYC CPUs. The partnership aims to create a 'governed enterprise AI infrastructure' tailored for highly regulated sectors like healthcare, which require stringent data security and compliance. This allows Rackspace to bypass low-margin public cloud competition and capture profitable, sticky enterprise workloads. Despite the rally, Wall Street maintains a 'Hold' rating on RXT with a mean price target of $4.33, implying over 33% downside from current levels. The stock has appreciated more than sixfold year-to-date in 2026.
Yahoo FinanceWhy This AI Data Center Stock Is Surging on an AMD Partnership
Rackspace Technology stock spiked on Tuesday after the cloud computing company finalized a deal to use chips from Advanced Micro Devices (AMD) in its data centers. The partnership, announced on June 16, 2026, positions Rackspace to leverage AMD's AI-focused processors for its cloud infrastructure, driving investor enthusiasm. The article, published by Barron's and syndicated on Yahoo Finance, highlights the market's positive reaction to the collaboration between the two companies in the competitive AI data center space.
Yahoo FinanceRackspace Technology Announces Phased Deployment Agreement with AMD for AI Compute and GPU-as-a-Service
Rackspace Technology, Inc. held an investor conference call to discuss its definitive agreement with AMD for a phased deployment of AMD AI compute and GPU-as-a-Service. The agreement involves dedicating and maintaining up to 30 megawatts of AMD products, including GPU and CPU compute deployments. Rackspace expects to deliver Enterprise AI Cloud, Enterprise Inference Engine, Inference-as-a-Service, and Bare Metal AMD Instinct capabilities. The collaboration aims to meet anticipated end customer demand in the AI industry, though forward-looking statements include risks and uncertainties that could affect timelines and full achievement of the deal's benefits.
All Articles on Seeking AlphaRackspace Shares Jump 30% After Securing AMD-Powered AI Infrastructure Agreement
Rackspace Technology shares surged 30% on Tuesday after announcing a definitive agreement with AMD to deploy 30 megawatts of AI computing infrastructure. The deal formalizes a May 2026 memorandum of understanding, establishing AMD as a strategic technology partner. The infrastructure will be rolled out across Rackspace's global data centers from late 2026 through 2028, using AMD's Instinct MI355X and MI350P GPUs and EPYC CPUs integrated into Rackspace's Enterprise AI Cloud. The partnership targets regulated industries like healthcare, offering secure and compliant AI infrastructure. Rackspace and AMD will jointly pursue enterprise customers transitioning from pilot projects to large-scale AI deployment. New managed services include Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service, and Bare Metal AMD Instinct solutions. The deal positions both companies to capitalize on growing enterprise AI demand.
Yahoo FinanceRackspace Shares Jump 30% After Securing AMD-Powered AI Infrastructure Agreement
Rackspace Technology (NASDAQ:RXT) shares surged 30% on June 16, 2026, after announcing a definitive agreement with AMD to deploy 30 megawatts of AI computing infrastructure. The deal formalizes a May 2026 MoU and establishes AMD as a key strategic partner for Rackspace's managed AI platform. The infrastructure will be rolled out in phases across Rackspace's global data centers from late 2026 through 2028, using AMD's Instinct MI355X and MI350P GPUs and EPYC CPUs. The platform targets enterprise customers in highly regulated industries like healthcare, offering secure and compliant AI infrastructure. Rackspace and AMD will jointly pursue customer adoption, and the agreement will accelerate new services including Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service, and Bare Metal AMD Instinct solutions.
Yahoo Finance