Highlights:

  • Generative AI serves as the driving force behind conversational chatbots like ChatGPT, alongside other AI models capable of producing diverse outputs, including images, videos, and code.
  • The partnership with Dell and Nvidia offers customers a streamlined avenue for setting up and overseeing a private cloud infrastructure tailored to generative AI endeavors.

Rackspace Technology Inc., a prominent player in cloud services, is rapidly advancing in generative artificial intelligence. The company has strategically joined forces with Dell Technologies Inc. and Nvidia Corp. to provide customers with comprehensive access to a full-stack infrastructure, software, and specialized knowledge essential for effectively running advanced AI models.

The partnership unveiled recently constitutes a significant facet of the organization’s initiative, Foundry for Generative AI by Rackspace (FAIR), inaugurated in June. Through the FAIR initiative, Rackspace aims to furnish customers with the complete spectrum of components necessary for constructing generative AI applications, irrespective of whether they are deployed on-premises or in cloud environments. Generative AI serves as the driving force behind conversational chatbots like ChatGPT, alongside other AI models capable of producing diverse outputs, including images, videos, and code.

Rackspace has outlined that its FAIR initiative will leverage Dell’s Validated Design for Generative AI in partnership with Nvidia. This synergistic approach combines Dell’s server hardware with Nvidia’s AI software and graphics processing units, laying the robust groundwork for customers’ generative AI models. It grants access to potent AI-capable Dell PowerEdge servers, Nvidia’s cutting-edge DGX supercomputer platform, and crucial software like Nvidia AI Enterprise and Nvidia NeMo – a framework for training, customizing, and deploying generative AI models.

In the previous year, Rackspace joined Nvidia’s DGX-Ready Managed Services program as a partner, offering the expertise needed to assist customers in effortlessly adopting Nvidia DGX without the need for in-house infrastructure management. Nvidia DGX facilitates enterprise access to Nvidia’s pinnacle H100 Tensor Core graphics processing units, all seamlessly housed within Rackspace’s data centers.

As stated by Rackspace, the partnership with Dell and Nvidia offers customers a streamlined avenue for setting up and overseeing a private cloud infrastructure tailored to generative AI endeavors. Customers will have the flexibility to deploy their private clouds within Rackspace’s extensive network of global data centers or opt for on-premises deployment within their data centers. The potential to swiftly establish a private cloud dedicated to generative AI is poised to garner considerable interest. Numerous enterprises have hesitated to embrace this technology due to apprehensions surrounding data privacy and security, making this offering particularly appealing.

Rackspace’s Chief Product and Technology Officer Lance Weaver highlighted that FAIR presents a streamlined avenue for enterprises to embrace generative AI. This is facilitated through a well-established architecture and the availability of expertise in multi-cloud AI, making adoption a straightforward process.

Jeff Boudreau, President of Dell’s Infrastructure Solutions Group, emphasized that customers can execute a range of workloads, encompassing AI training, Generative AI tuning, and AI inference. This can be accomplished through a synergistic blend of the company’s servers, storage arrays, and data protection portfolio.

Could the Adoption of Generative AI Be Rackspace’s Driving Force Behind Growth?

Rackspace is placing a substantial bet on generative AI at a pivotal juncture. This strategic move comes as the company endeavors to revitalize its business, which has stagnated recently. Having once competed with Amazon Web Services Inc. in the domain of cloud infrastructure, the company underwent a strategic shift to provide managed services for the very cloud platforms of its former competitor. This transformation entails assisting enterprises in conceiving, constructing, and managing intricate application environments.

While this pivot initially ignited growth for the company, recent years have witnessed challenges in gaining further momentum. This led to” business realignment,” culminating in the appointment of Amar Maletira as the successor to former Chief Executive Kevin Jones last year.

Under the leadership of Maletira, Rackspace is orchestrating yet another pivot, capitalizing on the substantial potential offered by generative AI. Through the newly introduced FAIR program, Rackspace extends consulting services to aid customers in conceptualizing practical applications for generative AI. In addition, the company offers the necessary expertise and infrastructure to transform these concepts into tangible initiatives.