Rackspace Technology, Inc.

Rackspace Technology and AMD have signed a definitive agreement for the phased deployment of an initial 30 MW of AMD-based computing power in Rackspace's global data centers from late 2026 to 2028. This agreement formalizes a previously announced MoU, establishing AMD as a strategic chip-level technology partner for Rackspace's AI stack. The collaboration aims to provide significant capacity for regulated enterprise workloads, integrating AMD Instinct GPUs and EPYC CPUs into a holistic Enterprise AI Cloud architecture.

Rackspace Technology, Inc. approved a workforce realignment plan on June 10, 2026, aimed at accelerating its strategic transformation towards governed enterprise AI. This plan involves deemphasizing legacy service delivery functions and terminating approximately 15% of its global workforce. The company expects to incur one-time expenses of $14 million to $19 million, mostly in 2026, and anticipates realizing $75 million to $85 million in annualized run-rate savings, a significant portion of which will be reinvested in high-growth AI product and service areas.

Rackspace Technology, Inc. announced it has signed a definitive GPU-as-a-Service Agreement with Advanced Micro Devices, Inc. (AMD). This agreement facilitates the phased deployment of AMD AI compute products, including GPUs and CPUs, across Rackspace's global data centers. The initial deployment will involve dedicating 30 MW of capacity, with phased rollouts planned through 2028. The company noted that deployments are contingent on securing additional financing and the availability of AMD products, and AMD will have a right of first refusal on certain GPU capacity.

Rackspace Technology and AMD have signed a definitive agreement for the phased deployment of an initial 30 MW footprint dedicated to AMD-based compute across Rackspace's global data centers, starting in late 2026 and continuing through 2028. This agreement operationalizes a previously announced Memorandum of Understanding, establishing AMD as a strategic technology partner for Rackspace's governed AI stack. The collaboration will incorporate AMD Instinct GPUs and EPYC CPUs within an integrated Enterprise AI Cloud architecture, targeting regulated enterprise workloads like healthcare. Both companies will dedicate sales and marketing resources to identify and engage enterprise customers for this AMD compute-powered infrastructure.

Rackspace Technology, a global enterprise AI infrastructure and solutions provider, announced the establishment of its regional headquarters in Riyadh, Saudi Arabia. This move reinforces the company's long-term commitment to the Kingdom and the broader Middle East, aligning with Saudi Arabia's Vision 2030 agenda. The new strategic hub, led by Shakeel Mohammed, will focus on accelerating enterprise cloud adoption, expanding sovereign and regulated cloud capabilities, and supporting AI-driven transformation initiatives across the GCC region.

Rackspace Technology reported a net income of $8.3 million for Q1 2026, a significant improvement from a net loss of $71.5 million in Q1 2025. Revenue increased to $678.1 million from $665.4 million year-over-year. The positive earnings were significantly aided by a $55.8 million gain on debt extinguishment. The company remains highly leveraged with $2,477.6 million in total debt principal outstanding as of March 31, 2026, and experienced a decrease in cash and cash equivalents.

Rackspace Technology and AMD announced a Memorandum of Understanding (MoU) for a multi-year strategic partnership. The collaboration aims to develop a specialized Enterprise-AI-Cloud for regulated and sovereign workloads, integrating AMD Instinct GPUs and EPYC CPUs into a fully managed infrastructure. This initiative seeks to establish a new category of managed AI infrastructure, with Rackspace controlling the entire stack from chip to outcome, addressing critical needs for security, governance, and accountability in enterprise AI.

Rackspace Technology reported its first quarter 2026 financial results, with revenue increasing 2% year-over-year to $678 million. The company achieved a net income of $8 million, a significant improvement from a net loss of $(72) million in the prior year. Public Cloud revenue grew 7% to $443 million, while Private Cloud revenue decreased 6% to $235 million. Additionally, Rackspace Technology announced a Memorandum of Understanding with AMD to establish a new category of governed Enterprise AI Infrastructure.

Rackspace Technology and AMD announced a Memorandum of Understanding for a multiyear strategic partnership to develop an Enterprise AI Cloud. This collaboration aims to provide a fully managed, governed AI infrastructure specifically designed for regulated enterprises and sovereign workloads, integrating AMD Instinct GPUs and EPYC CPUs. Rackspace will manage the entire stack, offering a new model where dedicated AMD compute is embedded within a governed operating framework, ensuring security, governance, and accountability from silicon to outcomes.

Rackspace Technology reported first-quarter 2026 revenue of $678 million, a 2% increase year-over-year, with net income turning positive at $8 million compared to a net loss of $(72) million in Q1 2025. The company also announced a Memorandum of Understanding with AMD to establish a new category of governed Enterprise AI Infrastructure. Public Cloud revenue grew 7% to $443 million, while Private Cloud revenue decreased 6% to $235 million.