Rackspace Technology IncRXT
▲ PositiveDemandrelevance
Rackspace launches its managed multitenant cloud on VMware Cloud Foundation 9.1, targeting regulated industries.
Impact on stocks 2
Cloud & Digital Infrastructure▲ · 1 stocks
Rackspace Technology IncArtificial Intelligence▲ · 1 stocks
Broadcom IncAVGO
▲ PositiveDemandrelevance
Early commercial traction for VMware Cloud Foundation 9.1 in a managed multitenant setup signals product adoption.
Theme Impact 2
Off-coverage companies
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impact 4
Cloudflare Says AI Agent Traffic Tops 50% as Q2 Revenue Jumps 36%
Cloudflare said more than 50% of the traffic flowing across its network was nonhuman in the second quarter of 2026, reflecting rapid growth in AI agents and machine-to-machine traffic. The company ended the quarter with more than 7.4 million developers on its Workers platform, adding nearly two million in the quarter alone, and management said Workers remains one of the fastest-growing parts of its business. Cloudflare also introduced Monetization Gateway, Wallets and cloudflare.pay during the quarter to support transactions between AI agents, businesses and content providers. Second-quarter revenues increased 36% year over year, while dollar-based net retention reached 120%, and management said its total addressable market has expanded to more than $300 billion from $30 billion at the time of its IPO. The Zacks Consensus Estimate points to Cloudflare revenue growth of 32.5% in 2026 and 28.6% in 2027, with 2026 earnings estimated at $1.26 per share, up 35.5% from the prior year.
Expanse Raises $5.3 Million Seed Funding for AI Resource Allocation Software
Expanse has secured $5.3 million in seed funding to advance its AI infrastructure software, which predicts the exact computational resources needed before AI tasks are executed to minimize over-allocation and optimize GPU, CPU, and memory usage. The company says the platform addresses critical inefficiencies, as industry estimates indicate significant percentages of cloud expenditures are wasted on underutilized resources. Elsewhere in the market, Super Micro Computer rose 9.5% to close at $40.35, while ServiceTitan fell 7.5% to $54.25, near its 52-week low. Oracle finished at $150.59, up 5.2%, after announcing Java 27 advancements and a partnership with Quorum Health to enhance AI-powered innovation in healthcare. Microsoft settled at $497.75, up 1.5%, after announcing strategic alliances with Marvell and Nokia to enhance cloud-native payment security and AI-driven networks, and Alphabet settled at $347.33, up 1.3%.
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DigitalOcean Secures $725 Million Equipment Finance Facility for AI Cloud Capacity
DigitalOcean Holdings secured a $725 million equipment finance facility on September 10 to fund the GPU and CPU capacity its AI-Native Cloud business needs, sending the stock up 7.45%. The facility, arranged with MUFG Bank as lead administrative and collateral agent alongside Axos Bank, BMO Bank and Wells Fargo as joint lead arrangers and PNC Bank as document agent, matures on September 10, 2030, and carries an accordion option for another $300 million. CFO Matt Steinfort described the financing as a way to align cash outflows with revenue at an attractive cost of capital, raised from a position of strength. The move follows second-quarter results reported on August 4, when DigitalOcean posted revenue growth of 29% year over year and raised its full-year outlook on accelerating AI demand. Remaining performance obligations reached $894 million in the second quarter, up twelvefold from a year earlier, while AI customer ARR grew 212% year over year and customers spending $500,000 or more grew their revenue contribution 160%. The expansion has come at a cost: operating income fell 18%, operating margin slipped to 10%, net income dropped 4% to $35 million, and adjusted free cash flow margin narrowed from 26% to 22%.