Is Rackspace (RXT) Using AMD-Powered AI Cloud Deals To Redefine Its Core Business Model?
Rackspace Technology (RXT) recently announced a memorandum of understanding with AMD to integrate Instinct GPUs and EPYC CPUs into a fully managed enterprise AI cloud, aiming to pivot towards higher-value AI and managed cloud services, especially for regulated industries. This move could strengthen its position in AI-centric workloads and potentially offset declining legacy revenues. However, the company still faces challenges with shrinking legacy revenues, pressured margins, and ongoing negative free cash flow.
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