TLDR: Oxide Computer Company, a startup specializing in on-premises cloud infrastructure, has successfully closed a $100 million Series B funding round. This significant investment, led by Thomas Tull’s US Innovative Technology Fund, will enable Oxide to dramatically scale its manufacturing capabilities, expand customer support, and accelerate product development to meet the surging demand for integrated, private cloud solutions, particularly for intensive AI workloads.
Emeryville, CA – Oxide Computer Company, a pioneering force in on-premises cloud computing, announced today the successful completion of a $100 million Series B funding round. This substantial capital infusion, led by Thomas Tull’s US Innovative Technology Fund (USIT) with continued participation from all existing investors including Eclipse Ventures, Rally Ventures, and Intel Capital, more than doubles the company’s total capital raised to date, positioning it for significant expansion.
The funding arrives at a critical juncture, as enterprises increasingly seek robust, integrated solutions for their data centers that offer the agility of public cloud services without compromising control, security, or incurring unpredictable costs. A key driver for this demand is the escalating need for powerful, efficient infrastructure to handle demanding artificial intelligence (AI) and machine learning (ML) workloads, which often strain the economic viability of public cloud environments.
Oxide’s core offering, the Oxide Cloud Computer, is a rack-scale system that unifies compute, storage, and networking into a single, manageable unit, complete with built-in orchestration software. This integrated approach aims to deliver hyperscaler-class efficiency and ease of use directly within a customer’s own premises. The company, founded in 2019 by former executives from Apple and Cisco, has focused on rethinking the entire hardware and software stack from first principles.
Steve Tuck, CEO and co-founder of Oxide, emphasized the strategic importance of this funding, stating, ‘This round gives us the ability to scale confidently and sustainably in step with accelerating customer growth. Our customers want the agility of the public cloud without giving up control, and they want to know their infrastructure partner is built to last. With this raise, we’re deepening our commitment to delivering a long-term solution that meets those needs head-on.’
The $100 million investment will primarily be allocated to scaling manufacturing operations, enhancing customer support, and accelerating the delivery of Oxide’s product roadmap. The company also plans to ramp up hiring across engineering and sales departments and upgrade its logistics network to accommodate a recent surge in large customer orders, some reportedly involving hundreds of Oxide Cloud Computers. This capital will also directly support enhancements for AI and machine learning workloads, an area where on-premise solutions are gaining traction amidst global chip shortages.
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Technically, the Oxide Cloud Computer is a formidable 1.15-ton data center rack, housing up to 64 servers. Each server is equipped with a 64-core AMD processor, up to 1.09 terabytes of memory, and 64 terabytes of flash storage. A key selling point is its relative simplicity, with setup reportedly taking around two hours, and resources provisioned via an API similar to public cloud environments. Oxide has developed many of its components in-house, including a custom service processor with an open-sourced operating system, and the Helios OS for its servers, based on the Linux alternative Illumos. The system also incorporates custom switches designed for congestion detection and built-in firewalls, ensuring robust performance and security.
