Shares of Rackspace Technology (RXT) more than doubled in pre-market trading on Wednesday, after the company partnered with Palantir Technologies (PLTR) to assist businesses in quickly deploying Palantir’s Foundry and Artificial Intelligence Platform.
RXT shares surged 157% pre-market, while PLTR stock climbed 3%.
As part of the agreement, Palantir’s software will also run in Rackspace’s Private Cloud and U.K. Sovereign data centers. Rackspace currently has 30 engineers trained on Palantir’s technologies to assist with data migration and complex deployments, and plans to expand that number to more than 250 over the next year. The companies expect the partnership to significantly shorten AI deployment timelines.
“Palantir’s platform, combined with Rackspace's governed cloud operations and our shared forward-deployed engineering approach, enables customers to accelerate time to value and drive competitive business impact with governance and security. This is especially important in regulated industries,” said Gajen Kandiah, CEO of Rackspace Technology.
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