
Rackspace bets on AMD-powered AI cloud, lifting shares
Rackspace Technology finalized a deal to power its AI cloud with AMD hardware, making AMD Instinct GPUs and EPYC CPUs the main components and rolling out 30 megawatts of capacity by 2028 as the company pivots to managed AI cloud services. The move accompanies a 15% global workforce realignment, and comes as Rackspace has surged about 500% in 2026; the news spurred intraday stock gains (though AMD slid on the day) and follows other AI partnerships with Palantir, underscoring the company’s push into AI cloud offerings.

