Rackspace Technology shares climbed 12.4% in pre-market trading on September 10, 2026, after the company announced that it had joined the NVIDIA Cloud Companion Program.
The stock was trading near $3.641 before the market opened, remaining below its 52-week high of $8.60. Rackspace had reached a 52-week low of $0.393 earlier in the year, making the latest move a notable shift from those levels.
Rackspace targets regulated AI workloads
Through the NVIDIA partnership, Rackspace plans to provide enterprises with access to computing powered by NVIDIA’s Blackwell architecture. The offering is designed for organizations that cannot move sensitive workloads to public cloud platforms because of data-sovereignty, governance or security requirements.
The company has also introduced its Institutional Sovereign Pod, a managed private-cloud environment that combines NVIDIA Blackwell technology with Palantir Foundry and Palantir’s AIP platform. Rackspace is positioning the product for defense organizations, financial institutions and government customers seeking to deploy artificial intelligence while retaining control over critical data and operations.
The arrangement gives Rackspace a broader role in operating the production environment, rather than simply supplying access to graphics processing units. Its engineering teams are expected to work with customers from initial deployment through production, with managed operations continuing after launch.
Expanded role within NVIDIA’s ecosystem
As a Cloud Companion, Rackspace will work across NVIDIA’s compute, networking, visualization and enterprise software offerings. The designation is intended to support integrations across the enterprise AI stack and reinforce Rackspace’s position as a managed infrastructure operator.
Palantir’s Foundry and AIP platforms are intended to provide the software layer for enterprise AI use cases, while NVIDIA supplies the underlying compute infrastructure. Rackspace will manage the combined system inside a controlled private-cloud setting.
The move came as the broader market provided little apparent lift: the Nasdaq was slightly lower and the S&P 500 was flat. A separate insider transaction disclosed earlier in the week involved Rackspace’s chief human resources officer and was described as a pre-arranged sale to cover tax withholding obligations.
