# Rackspace Nvidia Partnership Sparks Rally

> Rackspace's Nvidia partnership lifts shares but $2.8 billion debt looms.
- Title: Rackspace Nvidia Partnership Sparks Rally · Yahoo Finance
- Summary: Rackspace's Nvidia partnership lifts shares but $2.8 billion debt looms. Rackspace Technology's Nvidia partnership caused a 6% stock rally but its $2.8…
- Keywords: rackspace, nvidia, cloud partner program, sovereign ai, debt load, stock rally, business, finance, Partnership, Sparks, Rally, Yahoo Finance
- Source: Yahoo Finance — https://finance.yahoo.com/markets/stocks/articles/rackspace-nvidia-partnership-sparks-early-163851620.html
- Published: 2026-09-17T16:38:51+00:00
- Read time: 1 min
- Topics: rackspace, nvidia, cloud partner program, sovereign ai, debt load, stock rally, business, finance
## Rackspace joins Nvidia Cloud Partner Program
Rackspace Technology shares climbed more than 6% after announcing it joined Nvidia's Cloud Partner Program.

> AI sovereignty is ultimately about control: control of your data, your models, and the intelligence your organization creates. NVIDIA provides the accelerated computing foundation, and Rackspace brings the infrastructure, engineering, and operations required to run it in production. For organizations where governance, sovereignty, and uptime are non-negotiable, our role is to make that entire system work and remain accountable for the outcome.
## Sovereign AI Infrastructure Push
Rackspace introduced its Institutional Sovereign Pod combining Nvidia Blackwell with Palantir Foundry and AIP platforms.
## Debt Load Concerns
Rackspace faces $2.8 billion debt and negative equity with negative free cash flow.
## Past Stock Volatility
Shares dropped 33.6% after guidance cut and $250 million share sale in July.
## Hedge Fund Activity
Hedge fund ownership rose to 22 funds by end of Q2 2026 from 8 funds in Q1 2026.
## Market Reaction
Short interest remains high at 22.19% of float as of August 31, 2026.
## Key takeaway

Rackspace Technology's Nvidia partnership caused a 6% stock rally but its $2.8 billion debt remains a key concern.