Rackspace and Palantir sign deal to deploy AI for regulated firms

Rackspace Technology (NASDAQ: RXT) and Palantir Technologies (NASDAQ: PLTR) have executed a definitive agreement establishing an operating framework to deploy Palantir Foundry and artificial intelligence platform (AIP) in mid-market, regulated, and sovereign environments, naming Rackspace a preferred partner, according to a press release.

The framework combines Palantir Foundry and AIP with Rackspace's private cloud, sovereign cloud, on-premises infrastructure, and managed operations. It targets customers in healthcare, financial services, energy, and the mid-market that require control over data residency, security, governance, and compliance.

Under the agreement, Rackspace serves as a preferred operator for on-premises, private cloud, and sovereign Palantir deployments across public and private sector customers. Rackspace has scaled to approximately 400 Palantir certifications across sales, engineering, delivery, and operations since the companies' initial February 2026 announcement.

The companies reported that their first joint deployment closed in under two months, with Rackspace forward-deployed engineers deploying AI-enabled workflows on Palantir Foundry at a U.S.-based solar tracking manufacturer, resulting in a claimed 94% reduction in quote cycle time.

Rackspace also announced it will deploy Foundry and AIP across more than 70% of its own back-office operations through its Rackspace OneOS program.

"While most regulated enterprises have an AI strategy, they often lack the operating model to put AI into production safely and at scale," said Gajen Kandiah, Chief Executive Officer of Rackspace Technology.

Palantir Co-Founder and Chief Executive Officer Alex Karp said the framework "brings Palantir Foundry and AIP together with Rackspace's infrastructure and delivery capabilities for mission-critical environments."

The two companies plan to jointly pursue customers in healthcare, financial services, energy, private equity, and the mid-market, including large-scale private cloud and sovereign deployments.

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