Palantir (PLTR) has entered into a strategic partnership with Rackspace (RXT), a hybrid multicloud and AI solutions company, to help increase the speed at which enterprises can deploy and operate its analytical and AI-driven software.
Rackspace shares had surged more than 150% by early market action on Wednesday, while Palantir had ticked up 2.5%.
As part of the partnership, Rackspace will serve as Palantir’s partner in data migration and global implementation.
“Through this partnership, Rackspace’s governed operating model will provide consistent security, operating controls and compliance from edge to core to cloud, enabling customers to deploy AI use cases with Palantir in production in weeks or months versus months or years,” the companies said. “The companies are also collaborating to run Palantir software in Rackspace’s Private Cloud and UK Sovereign data centers. This is especially critical for regulated industries where AI deployments must meet strict data sovereignty and compliance requirements.”
“Organizations that adopt our AI Operating Systems fundamentally change their unit economics,” said Sameer Kirtane, Head of US Commercial at Palantir. “In the context of migrating complex data environments, Palantir AIP is taking completion timelines from years to days. Rackspace will help our customers accelerate their pace of adoption and, as a result, lead their respective industries.”
Palantir was also upgraded to Outperform from Neutral by Mizuho on Wednesday. The financial firm reiterated its $195 price target on the stock.
It cited Palantir’s surging U.S. commercial business combined with its declining stock value year to date, which has created a more attractive risk versus reward scenario.
“Looking forward, we are bullish on a surging US Commercial business fueled by rising enterprise adoption of AIP and growing urgency around internal data integration,” said Mizuho analyst Gregg Moskowitz in an investor note. “And more broadly, we remain steadfast in our view that PLTR is increasingly well-positioned to benefit from long-term trends in AI, government digital transformation, and industrial modernization.”