Press Release
Rackspace and Together AI Announce Strategic Agreement to Support Enterprise AI Inference
Initial agreement to deliver Together AI inference on NVIDIA GB300 NVL72 infrastructure operated by Rackspace
SAN ANTONIO, Nov. 10, 2026 (GLOBE NEWSWIRE) -- Rackspace® (NASDAQ: RXT), the operator of the full enterprise AI stack, and Together AI, the AI Native Cloud, today announced an initial multiyear strategic AI infrastructure agreement under which Rackspace expects to provide and operate dedicated NVIDIA GB300 NVL72 infrastructure connected with NVIDIA Spectrum-X Ethernet networking to support Together AI inference workloads. Deployment is planned for 2027, subject to the satisfaction of certain conditions. This deployment reflects Rackspace’s strategy to become the operator of the full enterprise AI stack, leveraging its decades of experience operating mission-critical environments to give customers compute solutions that meet the security, trust, and governance needs in regulated, production environments.
The companies also entered into a separate, non-binding letter of intent (LOI) to explore a joint go-to-market approach for enterprise-focused AI solutions, with Together AI providing inference capabilities and Rackspace providing the supporting AI infrastructure, platforms, solutions and forward-deployed engineering expertise.
Dedicated AI infrastructure backed by operational accountability
Together AI has partnered with Rackspace based on its deep infrastructure and engineering expertise, operational capabilities and ability to support the demanding requirements of enterprise AI workloads. Under the initial agreement, Rackspace expects to provide and operate the dedicated NVIDIA Blackwell Ultra infrastructure, including associated power, liquid cooling, networking and storage. The parties expect to evaluate additional security, governance and compliance controls for future offerings, depending on end-customer requirements and agreed configurations. Together AI expects to provide the managed cloud platform operating on that infrastructure, including access to open source models, inference optimizations and developer tools.
Rackspace intends to build a repeatable model to support AI platform companies, systems integrators and enterprises as they scale AI infrastructure while retaining control of their technology and customer relationships. Rackspace's approach to scaling AI infrastructure is to seek contractual commitments for dedicated capacity and manage related financing and capital commitments with the goal of aligning to expected customer demand and the useful life of the underlying hardware.
“Enterprise AI requires more than access to compute. Success depends on bringing compute into production, operating it reliably and delivering sustained value. That requires deep infrastructure and engineering expertise combined with operational accountability,” said Gajen Kandiah, Chief Executive Officer of Rackspace. “Rackspace brings more than 25 years of experience operating complex enterprise environments. Today’s announcement provides an opportunity to apply that experience to the dedicated infrastructure supporting Together AI’s inference platform. We believe this relationship advances our strategy to be the operator of the full enterprise AI stack.”
Exploring additional enterprise AI opportunities
Beyond the infrastructure agreement, Rackspace and Together AI intend to explore potential opportunities to jointly serve enterprise customers requiring greater control, compliance, and data sovereignty. The non-binding LOI contemplates evaluating how Together AI’s inference, post-training and reinforcement learning capabilities could be combined with Rackspace’s infrastructure, platforms and engineering services to provide additional options for customers deploying AI in production. Any joint offerings would depend on further agreement between the parties and applicable customer requirements.
Rackspace's experience supporting enterprises in regulated industries, combined with its expertise across private cloud, hyperscaler and edge environments, may create opportunities to evaluate deployment configurations that bring Together AI's cloud closer to enterprise data and workloads. The availability and characteristics of any such configurations, including data residency, security and compliance features, would be determined by the specific offering and customer arrangement, potentially providing greater flexibility in where and how customers deploy AI.
"Scaling in the enterprise requires infrastructure that can grow with our ambitions while delivering the performance and reliability customers expect," said Vipul Ved Prakash, founder and CEO of Together AI. "Rackspace brings the infrastructure engineering and operational expertise to support that growth and we look forward to exploring additional opportunities together."
Powered by next-generation NVIDIA accelerated computing
Rackspace, an NVIDIA Cloud Partner, plans to operate the deployment using dedicated NVIDIA GB300 NVL72 systems in a purpose-built, liquid-cooled facility, supported by NVIDIA networking. The planned infrastructure is designed to provide the performance, reliability and operational foundation needed to support Together AI's enterprise inference workloads at scale.
“Enterprises need infrastructure that turns AI advances into services they can deploy at scale,” said Raj Mirpuri, Vice President of Global AI Clouds and Infrastructure Ecosystem at NVIDIA. “With NVIDIA Blackwell Ultra, Rackspace and Together AI can run inference workloads efficiently and bring the next wave of enterprise AI services to market.”
Financing
Effective November 6, 2026, Rackspace entered into a share purchase agreement with an investor group led by Voss Capital, LP providing for an aggregate $66 million private placement of Rackspace common stock. Rackspace expects to use the net proceeds for general corporate purposes, working capital, capital expenditures and growth capital, including funding for GPU-related initiatives. Rackspace expects to seek separate financing for the purchase of the NVIDIA GB300 NVL72 systems and is in active discussions with potential lenders; however, no definitive GPU financing commitment has been obtained as of the date of this release. There can be no assurance it will be obtained on acceptable terms or at all, and Rackspace’s obligations to proceed with the deployment are subject to the financing condition and other conditions in the definitive agreement.
About Rackspace
Rackspace (NASDAQ: RXT) is the operator of the full enterprise AI stack, bringing together infrastructure, applications, data and AI platforms across private and public cloud environments. Through its Build | Operate | Innovate delivery model, Rackspace combines engineering, infrastructure and continuous operations to help enterprises deploy and operate AI reliably, reduce complexity and realize measurable business value. Building on more than 25 years of experience operating complex enterprise technology, Rackspace helps customers manage AI performance and costs while maintaining control over their data, technology choices and where their AI runs. Its vendor-neutral, model-agnostic capabilities give customers the flexibility to evolve as technology changes. Learn more at www.rackspace.com.
About Together AI
Together AI is the AI Native Cloud, combining state-of-the-art open-source models, high-performance infrastructure, and frontier research in AI inference and scalability. Founded in 2022, Together AI powers over two million developers and some of the world's most demanding AI workloads, delivering production-scale inference, post-training, and reinforcement learning for companies building the next generation of AI apps.
Forward-Looking Statements
Rackspace has made statements in this press release and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this press release are, or could be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements include, without limitation, statements regarding: the expected value, duration, scope, timing and terms of the arrangements with Together AI; the planned deployment of NVIDIA GB300 infrastructure and its expected timing; the non-binding letter of intent and any potential future capacity expansion or commercial opportunity, which is subject to future definitive agreements and other conditions; the contemplated joint go-to-market approach and opportunities to jointly serve enterprise customers; Rackspace’s plans to provide and operate the infrastructure, including the facility, power, cooling, networking and storage; our plans for financing and investment in the deployment and the availability, timing and terms of any such financing; our strategy and management’s plans and objectives for future operations, business prospects, market conditions, and other matters. Any forward-looking statement made in this press release speaks only as of the date on which it is made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. Forward-looking statements can be identified by various words such as “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects,” “plans,” “potential,” “opportunity,” “contemplates,” “designed to,” “intended,” and similar expressions. These forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. The agreement with Together AI is a binding, definitive agreement between the parties; however, Rackspace’s obligations are subject to certain conditions, including Rackspace obtaining financing for the deployment on acceptable terms (which financing has not been finalized on the date of this press release), and the availability of facilities, power and equipment (including the GPUs and related infrastructure) on the expected timeline. Factors that could cause actual results to differ materially from those stated or implied in this press release include, among others: Rackspace’s inability to obtain financing for the deployment on acceptable terms, or at all; the failure to satisfy the other conditions to Rackspace’s obligations under the agreement with Together AI; delays in, or the unavailability of, facilities, power, GPUs, networking, storage or other equipment; Rackspace’s ability to build, deploy and operate the infrastructure on the planned timeline and at the planned scale; Together AI’s performance under the agreement and demand for its services; and the effects of Rackspace prioritizing capital and capacity toward enterprise AI infrastructure on its other businesses and financial results. Rackspace cautions that these statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this press release, including among others, risk factors that are described in Rackspace’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
Media Contact Rackspace
Gracie LePere
publicrelations@rackspace.com
Media Contact Together AI
Marie Diamond
Mdiamond@together.ai
