Rackspace shares jumped 30% after the company secured an AMD-powered AI infrastructure agreement and outlined a broader push into AI computing. The company is partnering with AMD for a 30MW AI compute deployment while cutting 15% of its workforce to help fund the strategic pivot. The move expands Rackspace's enterprise AI ambitions at a time when businesses are seeking more capacity for artificial intelligence workloads, and it could sharpen competition with Nvidia in the market for AI computing hardware. The workforce cuts underscore the financial and operational trade-offs involved in repositioning the company around AI infrastructure.