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Research Report
Designing AI-First Systems for Customer Access
Key Takeaways
- Rackspace and Palantir aim to shrink AI deployment timelines from years to weeks.
- The partnership targets regulated industries with sovereign and private cloud hosting.
- Rackspace will expand from 30 to 250+ Palantir-trained engineers within 12 months.
Palantir and Rackspace announced on February 18 that they are teaming up to help enterprises deploy governed AI in weeks, not months. The goal? To help enterprises deploy and operate Palantir's Foundry and Artificial Intelligence Platform (AIP) in production environments.
The partnership combines Rackspace's governed operating model with Palantir's decision-intelligence platform. The companies will also run Palantir software in Rackspace's Private Cloud and UK Sovereign data centers, targeting regulated industries with strict data sovereignty requirements.
Rackspace currently has 30 Palantir-trained engineers and plans to scale to over 250 within 12 months, company officials said.
"Organizations that adopt our AI Operating Systems fundamentally change their unit economics. 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."
- Sameer Kirtane
Head of US Commercial, Palantir
Table of Contents
- Measurable AI Outcomes in 90 Days
- How Palantir and Rackspace Plan to Cut AI Rollouts to Weeks
- Billions in Defense Deals Fuel Palantir's Growth
Measurable AI Outcomes in 90 Days
According to D K Sinah, president of Public Cloud at Rackspace, "Today’s enterprise customers need a consistent way to deploy, govern, and operate their AI tools and solutions across hybrid environments, without sacrificing security, accountability, or performance."
With this partnership, he added, Rackspace will be able to deliver implementation — including data readiness, hosting and ongoing managed operations of Palantir's platform — to realize outcomes.
Measurable outcomes are case-by-case and depend on the specific business problem being solved, said Sinah. He pointed to a typical 90-day progression:
- In the first 5 days. "We build a working proof-of-value focused on one high-value use case. Whether that's supply chain visibility, customer retention risk or operational efficiency. The customer can immediately see how unified data answers questions they couldn't answer before."
- Within 30 days. "We're iterating based on user feedback and expanding data integrations. Customers typically see concrete time savings, decisions that used to take days of manual data gathering now happen in real-time."
- By 60-90 days. "With production AI workflows, we're measuring tangible operational improvements. This might look like reduced time to identify supply disruptions, earlier identification of at-risk customer accounts or significant reductions in manual reporting time. This gives teams the ability to intervene and make decisions faster."
Proven example outcomes include 10x faster consumption and analysis of Enterprise Resource Planning (ERP) data and 80% reduction in projected cloud costs for data preparation, said Sinah.
"The key differentiator is speed to value. We demonstrate the concept in days, refine it in weeks and customers typically see measurable operational impact within the first quarter in production environments. Then we scale from there."
How Palantir and Rackspace Plan to Cut AI Rollouts to Weeks
Initially, according to Sinah, the companies will focus on three highly regulated industries: healthcare & life sciences, financial services and critical sovereign infrastructure.
"Each of these industries faces similar data challenge, siloed systems preventing unified insight, but they have unique compliance requirements that often make traditional cloud AI deployments difficult." That, he claimed, is where Racksapce's infrastructure capabilities become critical. By collaborating with Palantir, they can deploy in sovereign environments that meet strict data residency requirements, on private cloud infrastructure for customers who can't use public cloud or in SOC2 certified environments for financial services.
The partnership is structured around five core operational pillars:
| Operational Pillar | What It Enables |
|---|---|
| Governed Operations | Security, controls and compliance from edge to core to cloud |
| Production Deployment | Aims to enable AI use cases in weeks versus months |
| Sovereign Hosting | Palantir software in UK Sovereign and Private Cloud data centers |
| Data Migration | Implementation services with forward deployed engineering |
| Managed Operations | End-to-end infrastructure hosting and ongoing platform management |
Billions in Defense Deals Fuel Palantir's Growth
Palantir has strengthened its position in defense software and enterprise AI through major government contracts and commercial partnerships. The US Army awarded Palantir a 10-year Enterprise Service Agreement last year, consolidating 75 contracts under a $10 billion cap. The Navy launched ShipOS in December 2025 with $448 million authorized to deploy Palantir's Foundry and AIP platforms.
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On the commercial side, strategic partnerships accelerated through late 2025, including a multi-year partnership with Lumen Technologies in October and an NVIDIA collaboration to operationalize enterprise AI. The company reported Q4 2025 results on Feb. 2, 2026, showing US commercial revenue up 137% year-over-year.