Investing.com -- Rackspace Technology (NASDAQ: RXT) shares rose 30% Tuesday after the company signed a definitive agreement with AMD (NASDAQ: AMD) for the phased deployment of 30 MW of AMD-based AI compute infrastructure.

The agreement operationalizes a Memorandum of Understanding announced May 7, 2026, and establishes AMD as a strategic technology partner for Rackspace’s governed AI stack. The deployment will occur across Rackspace’s global data centers beginning in late 2026 through 2028.

The collaboration will incorporate AMD Instinct GPUs, including MI355X and MI350P models, along with AMD EPYC CPUs within an integrated Enterprise AI Cloud architecture. The infrastructure is designed to serve regulated enterprise workloads, with healthcare providers expressing early interest in accelerated compute for clinical AI and inference at scale.

"Enterprises in regulated industries need AI infrastructure that is governed from the ground up, with one operator accountable for business outcomes, not a collection of vendors each owning a piece," said Gajen Kandiah, CEO of Rackspace Technology.

Both companies plan to dedicate sales and marketing resources to identify enterprise customers for AMD compute-powered infrastructure, with personnel from each company jointly developing customer opportunities across regulated industries.

The agreement will accelerate delivery of four integrated capabilities: Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service, and Bare Metal AMD Instinct. The companies aim to establish a new category of managed enterprise AI infrastructure targeting enterprises moving from AI experiments to agentic workflows within core enterprise systems.