Rackspace Technology Inc. (NASDAQ: RXT) skyrocketed Wednesday after the company revealed a **strategic partnership with Palantir Technologies Inc. (NASDAQ: PLTR) designed to accelerate enterprise AI deployments by combining Rackspace's infrastructure expertise with Palantir's leading AI platforms. The news ignited heavy trading and strong investor interest, lifting Rackspace stock more than 100% as markets reacted to the growth potential of the collaboration. (Investing.com)

ð?¤? What the Partnership Entails

Under the agreement, Rackspace will work with Palantir to help organizations implement and operate Palantir Foundry and the Artificial Intelligence Platform (AIP) in production environments -- significantly shortening the typical deployment timeline from months or years to just weeks or months.

Key elements of the collaboration include:

• Data migration services: Rackspace has already trained an initial group of 30 Palantir-trained engineers focused on helping clients migrate and operationalize data for AI workloads, with plans to expand the team to over 250 engineers in the next 12 months.
• Infrastructure hosting: Palantir software will be run in Rackspace's Private Cloud and UK Sovereign data centers, addressing critical data sovereignty and compliance needs for regulated industries and data-sensitive sectors.
• Managed operations: Rackspace will provide ongoing managed services -- including implementation support, cloud hosting, and governance controls -- to help clients maximize outcomes from Palantir's AI platforms.

According to Rackspace CEO Gajen Kandiah, the goal is to "provide AI that works in production, not just in demo environments," helping businesses achieve measurable outcomes more quickly and securely.

ð?? Strategic Significance for Both Companies

The collaboration harnesses Rackspace's 25+ years of experience managing enterprise workloads across cloud and hybrid environments with Palantir's decision-intelligence platforms, enabling a turnkey approach for companies adopting advanced AI technology.

For Rackspace, the deal represents a strategic pivot toward high-growth managed AI services, potentially opening new revenue streams as businesses move from experimentation to production-level AI implementation. For Palantir, the partnership expands its reach into new infrastructure environments and markets by leveraging Rackspace's global hosting footprint and operational expertise.

The post Rackspace Shares Surge After Strategic AI Partnership With Palantir appeared first on PRISM MarketView.

COMTEX_473773440/2927/2026-02-18T12:13:59