Rackspace slashes its annual loss by almost 75% amid AI push - San Antonio Express-News
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Rackspace Technology, the San Antonio-based cloud computing firm, reported slashing its annual net loss by nearly 75% to $61.5 million for fiscal 2025, driven by aggressive expansion into AI services. Revenue grew modestly to $3.0 billion, with AI-related bookings surging 40% as demand for managed AI infrastructure booms. CEO Kevin Jones highlighted the company's pivot to AI-managed services as key to profitability turnaround, positioning Rackspace to capture a slice of the exploding AI market amid hyperscaler competition.
- Job seekers in tech: More openings in AI/cloud roles near San Antonio or remote, with Rackspace hiring aggressively for engineers.
- Investors: Potential stock upside if AI push sustains momentum; monitor Q1 2026 earnings for revenue acceleration.
- Small business owners: Affordable AI tools via Rackspace could lower your cloud costs and boost operations efficiency.
- Career switchers: Upskilling in AI now positions you for high-demand roles as firms like Rackspace expand services.
Key Entities
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Rackspace Technology Organization
San Antonio-headquartered cloud computing provider specializing in managed hosting and AI services.
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Kevin Jones Person
CEO of Rackspace, leading the company's AI transformation and financial recovery efforts.
Bias Distribution
Multi-Perspective Analysis
Left-Leaning View
Corporate profit recovery via AI, but warns of job displacement from automation.
Centrist View
Reports financial turnaround facts, highlights AI market growth objectively.
Right-Leaning View
Praises business innovation and efficiency gains from AI investments.
Source & Verification
Source: Google
Status: Confirmed
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