Rackspace Surges After 30 MW AI Compute Deal with AMD; Cuts 15% Jobs
The company will deploy 30 MW of AMD-based compute and expects $75 million to $85 million in annual savings after severance.
- Today, Rackspace Technology and AMD announced a definitive agreement to deploy 30 MW of AMD-based compute across global data centers, with phased deployment beginning in late 2026 through 2028.
- This agreement operationalizes the Memorandum of Understanding announced May 7, 2026, establishing AMD as a strategic technology partner at the silicon layer of Rackspace's governed Enterprise compute stack.
- Alongside the AMD partnership, Rackspace announced a 15% workforce reduction to save between $75 million and $85 million annually after severance payments are made.
- Shares of Rackspace rallied on Tuesday, surging as much as 21.2% before settling at a 5% gain as the semiconductor sector sold off later in the day.
- Deprioritizing legacy products, Rackspace aims to refocus on Enterprise compute opportunities, though significant debt and slow 2% revenue growth remain challenges for the speculative investment.
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Rackspace terminates 750 workers to focus on new AI services
The San Antonio-based tech company said it would cut 15% of its global workforce. Rackspace employs 500 workers in San Antonio.Rackspace cuts 750 workers as the tech company pivots to artificial intelligence was first posted on June 17, 2026 at 8:00 am.©2021 "San Antonio Report". Use of this feed is for personal non-commercial use only. If you are not reading this article in your feed reader, then the site is guilty of copyright infringement. Pl…
Why Rackspace Rallied Today
Key PointsRackspace announced a deployment of AMD AI chips up to 30 MW through 2028. The company also announced a 15% workforce reduction. Rackspace has surged over 540% this year, but is still well below its IPO price10 stocks we like better than Rackspace Technology › Shares of Rackspace (NASDAQ: RXT) rallied on Tuesday, surging as much as 21.2% before settling at a 5% gain, as the semiconductor sector sold off later in the day. Rackspace anno…
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