Story perspectives

Rackspace Teams with AMD for AI Cloud, Shares Jump 13%

6/17/2026

Summary

Story summary

Rackspace Technology and AMD signed a definitive agreement to deploy 30 MW of AMD Instinct GPUs and EPYC CPUs in Rackspace data centers from late 2026 through 2028.
The deal makes AMD the primary chip supplier for Rackspace’s Enterprise AI Cloud and targets regulated sectors such as healthcare.
After the announcement, Rackspace shares rose about 13% to $6.66 while the company announced a 15% workforce cut costing $14-$19 million and saving $75-$85 million annually.

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Story summary

Rackspace Technology and AMD signed a definitive agreement to deploy 30 MW of AMD Instinct GPUs and EPYC CPUs in Rackspace data centers from late 2026 through 2028.
The deal makes AMD the primary chip supplier for Rackspace’s Enterprise AI Cloud and targets regulated sectors such as healthcare.
After the announcement, Rackspace shares rose about 13% to $6.66 while the company announced a 15% workforce cut costing $14-$19 million and saving $75-$85 million annually.