Rackspace Stock Surges 25% Premarket After Signing 30MW AMD Chip Deal, Approves 15% Workforce Cut

According to an SEC filing, Rackspace Technologies (RXT) surged 25% premarket on Tuesday after signing a definitive agreement with chipmaker Advanced Micro Devices (AMD) for phased deployments of up to 30 megawatts of compute power. AMD will supply its MI355X, MI350P GPUs and EPYC CPUs to power Rackspace's data centers worldwide starting later in 2026 through 2028.

Separately, Rackspace's board approved a workforce realignment plan to cut 15% of its global workforce, generating up to $85 million in annualized savings. The company will take a one-time charge of up to $19 million for severance and related costs, with savings redirected toward enterprise AI infrastructure development with AMD.