Rackspace Technology shares jump on AMD AI cloud service partnership
Updated
Updated · MarketWatch · May 7
Rackspace Technology shares jump on AMD AI cloud service partnership
11 articles · Updated · MarketWatch · May 7
The stock surged 93% to $4.38 and touched $4.47, its highest level in three years, after the companies signed a multiyear memorandum of understanding.
Rackspace said the service will use AMD processors and let Rackspace manage security, accountability and operations for enterprise AI customers, especially in regulated environments.
The deal comes amid booming demand for AI agents; AMD recently reported quarterly revenue up 38% to $10.25 billion, while Rackspace returned to profit with $8.3 million on $678.1 million revenue.
Can a financially distressed Rackspace successfully challenge tech giants with its new managed AI service?
Will outsourcing AI governance solve compliance headaches or create new risks for regulated industries?