Rackspace Seals 30 MW AMD AI Compute Deal and Cuts Workforce 15%
RXT•Rackspace signed a definitive agreement to deploy 30 MW of AMD-based AI compute capacity across global data centers in phases from late 2026 through 2028, boosting its governed AI offerings for regulated enterprises. The company announced a 15% workforce reduction alongside dedicated sales teams targeting healthcare and other regulated sectors.
1. Definitive 30 MW AI Compute Agreement
Rackspace converted its May memorandum of understanding with AMD into a binding deal to deploy 30 MW of AMD-based AI compute, appointing AMD as its strategic silicon partner for a governed AI stack.
2. Phased Deployment and Technology Stack
The rollout spans late 2026 through 2028 and will feature AMD Instinct GPUs (MI355X, MI350P) and EPYC CPUs integrated within Rackspace’s Enterprise AI Cloud architecture.
3. Target Markets and Sales Strategy
Regulated enterprises—particularly healthcare providers—are primary targets, supported by dedicated sales and marketing teams for Enterprise AI Cloud, Inference Engine, Inference as a Service, and bare-metal solutions.
4. Workforce Reduction and Operational Impact
Rackspace implemented a 15% workforce reduction to streamline operations while aligning headcount with the new AI compute deployment and go-to-market initiatives.
