Key Takeaways
- • Oxide Computer Company, the Emeryville, California-based maker of rack-scale on-premises cloud systems, raised a $445 million Series D led by Eclipse.
- • Existing investors US Innovative Technology Fund, Riot Ventures and Jane Street participated, while Atreides Management and AMD Ventures joined as new investors.
- • The company said it reached profitability earlier this year and paid income tax in the spring from ordinary operations, an unusual milestone for a fast-growing hardware business.
- • Oxide says it has scaled manufacturing capacity 20 times over the past 12 months, and demand still exceeds supply.
- • The new capital is intended mainly as working capital to secure components, expand manufacturing and fulfill a very large order backlog.
Summary
Oxide Computer Company, an Emeryville, California-based maker of rack-scale on-premises cloud systems, has raised a $445 million Series D led by Eclipse, according to HedgeCo.Net. Existing investors US Innovative Technology Fund, Riot Ventures and Jane Street participated in the round, and Atreides Management and AMD Ventures joined as new investors.
The company said it reached profitability earlier this year, an unusual milestone for a fast-growing hardware business. In a blog post, founders said Oxide paid income tax in the spring from ordinary operations and has a very large order backlog. Because hardware companies must commit cash to components and manufacturing well before systems ship, the new capital is intended mainly as working capital to secure components, expand manufacturing and fulfill orders.
Chief executive Steve Tuck said Oxide has scaled manufacturing capacity 20 times over the past 12 months and that demand still exceeds supply. The company attributes this growth to agentic AI workloads, which it says are increasing demand for full-stack systems that enterprises can own and control rather than rent from hyperscale cloud providers. Oxide's customers include financial services firms, government agencies, national laboratories and aerospace organizations.
AMD Ventures described its investment as strategic, building on a hardware and software relationship that includes Oxide's early bet on AMD EPYC processors. The source notes the round reflects the AI infrastructure trade broadening beyond GPUs and hyperscale data centers, and that a profitable company raising capital to fund backlog presents a different risk profile than a pre-revenue hardware bet.
The company said it reached profitability earlier this year, an unusual milestone for a fast-growing hardware business. In a blog post, founders said Oxide paid income tax in the spring from ordinary operations and has a very large order backlog. Because hardware companies must commit cash to components and manufacturing well before systems ship, the new capital is intended mainly as working capital to secure components, expand manufacturing and fulfill orders.
Chief executive Steve Tuck said Oxide has scaled manufacturing capacity 20 times over the past 12 months and that demand still exceeds supply. The company attributes this growth to agentic AI workloads, which it says are increasing demand for full-stack systems that enterprises can own and control rather than rent from hyperscale cloud providers. Oxide's customers include financial services firms, government agencies, national laboratories and aerospace organizations.
AMD Ventures described its investment as strategic, building on a hardware and software relationship that includes Oxide's early bet on AMD EPYC processors. The source notes the round reflects the AI infrastructure trade broadening beyond GPUs and hyperscale data centers, and that a profitable company raising capital to fund backlog presents a different risk profile than a pre-revenue hardware bet.
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