Rackspace Technology and AMD today announced the signing of a Memorandum of Understanding (MOU) establishing a framework for a multiyear strategic partnership to create an Enterprise AI Cloud purpose-built for regulated enterprises and sovereign workloads where security, governance, and accountability are non-negotiable. The collaboration proposes to invert the dominant model of renting GPU capacity by the hour, instead integrating AMD Instinct GPUs and EPYC CPUs into a fully managed, governed stack.
Rackspace Technology and AMD sign MOU for multiyear strategic partnership to build governed Enterprise AI Cloud.
Solution targets regulated enterprises and sovereign workloads requiring security, governance, and accountability.
Rackspace would own the stack from silicon to outcomes with defined SLAs and operational accountability.
Four integrated capabilities: Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service, and Bare Metal AMD Instinct.
Enterprise Inference Engine retains domain knowledge, session history, and enterprise-specific data context across queries.
Rackspace operates with an Outcomes-as-a-Service model for regulated and mission-critical industries.
“As enterprises move AI out of the lab and into production environments, they're asking who they can trust to run it there,” said Gajen Kandiah, CEO, Rackspace Technology. “Governing AI infrastructure in regulated environments with defined accountability is not something you bolt on after the fact. It must be built in from the start. Rackspace and AMD are building exactly that and in doing so, establishing a new category of enterprise AI infrastructure that the market has been asking for.”
Today's dominant model requires enterprises to rent GPU capacity by the hour and carry the operational burden themselves including integration, security and accountability. This collaboration proposes to invert that model by integrating AMD Instinct GPUs and EPYC CPUs into a fully managed, governed stack. Through this understanding, the companies aim to establish a new category of managed enterprise AI infrastructure where dedicated AMD compute is embedded inside a governed managed operating model, with Rackspace owning the stack from silicon to outcomes.
“Enterprise AI is quickly moving from experimentation to production, and that requires a compute foundation engineered for performance and efficiency at scale,” said Dan McNamara, senior vice president and general manager, Compute & Enterprise AI, AMD. “Our collaboration with Rackspace delivers AMD AI compute into managed, private and governed environments so enterprises can deploy AI with the performance and flexibility their workloads demand.”
The AMD collaboration is intended to position Rackspace to complete its curated enterprise AI stack and introduce four integrated capabilities. Together, these capabilities are designed to form a complete, integrated stack from bare metal compute and developer-ready inference tooling through a fully operated inference runtime with defined SLAs to a governed Enterprise AI Cloud. The aim is to give enterprises a single operator accountable for every layer, calibrated to the sovereignty, performance, and compliance requirements of each workload.
Enterprise AI Cloud: A fully managed, private and hybrid AI environment built on AMD Instinct GPUs, AMD EPYC CPUs, and Rackspace's governed operating model. Rackspace would assemble, integrate, and operate the full stack, from accelerated compute to AI inference and agents in production, for enterprises requiring sovereignty, compliance, and operational accountability.
Enterprise Inference Engine: A context-aware inference runtime that retains domain knowledge, session history, and enterprise-specific data context across queries, enabling AI agents and large language models to perform with the consistency and institutional memory that production environments require. Rackspace would own the SLA and take responsibility for availability, scaling, and performance, enabling organizations to run large language models and AI agents using their own proprietary data with full auditability and cost accountability.
Inference as a Service: Dedicated, managed AMD Instinct GPUs with developer-ready inferencing and fine-tuning toolkits delivered as a governed alternative to commodity GPU rental. The customer brings their own model and engineering team. Rackspace would provide reliable bare metal AMD Instinct capacity with operational discipline, hardware-level support, and performance SLOs.
Bare Metal AMD Instinct: Proposed dedicated, high-performance bare metal AMD Instinct compute for customers requiring physical isolation, deterministic performance, and direct hardware access for demanding and highly customized training and inference workloads.
Rackspace Technology (NASDAQ: RXT) is the operator of the full enterprise AI stack from governed private cloud to AI inference and agents in production. With an Outcomes-as-a-Service model built on secure infrastructure, data foundations, and forward-deployed engineering, Rackspace delivers business results for regulated and mission-critical industries where governance, sovereignty, and uptime are non-negotiable.
