RXT - Why Rackspace Technology Stock Soared 74% Last Month
2023-07-06 17:17:27 ET
Shares of Rackspace Technology (NASDAQ: RXT) rose 74.4% in June 2023, according to data from S&P Global Market Intelligence . The cloud computing platform provider built this tremendous gain in two chunky leaps. First, the company turned its official business focus toward the explosive artificial intelligence (AI) market. Then, Rackspace signed a long-term generative AI partnership with industry giant Google Cloud, a division of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) . Both announcements sent Rackspace's stock price skyward.
On June 13, the company unveiled a new AI unit called Foundry for Generative AI by Rackspace (FAIR). The idea is to provide a cohesive set of generative AI solutions across multiple cloud computing platforms. Rackspace will help its clients workshop generate AI ideas, find funding for the resulting projects, and build user-friendly experiences around the new AI products.
"As our customers chart new territories with generative AI, we will help them become trailblazers in their transformative journeys by pioneering the responsible and sustainable use of AI solutions," said Srini Koushik, Rackspace's chief technology officer and global leader of FAIR.
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Why Rackspace Technology Stock Soared 74% Last Month