Oxide Computer Secures $100M for Data Center Hardware

Data center hardware startup Oxide has raised $100 million in a Series B funding round. The investment was led by US Innovative Technology Fund, with participation from all existing backers, including Intel Capital.

Scaling On-Premise Cloud Infrastructure

The company produces the Oxide Cloud Computer, a fully integrated data center rack designed to offer a cloud-like experience on-premises. This solution competes with offerings from established enterprise vendors like Dell Technologies by providing a cohesive hardware and software stack. Consequently, the system simplifies deployment, which takes approximately two hours.

The flagship product is a 1.15-ton rack containing up to 64 servers. Each server features a 64-core AMD processor, up to 1.09 terabytes of memory, and 64 terabytes of flash storage. Developers can then provision these resources for workloads using an API.

Oxide Computer builds many of its own components to enhance security and control. For instance, its in-house service processor avoids many features found in off-the-shelf alternatives, reducing the attack surface and simplifying management. This focus on integrated cybersecurity is a key differentiator from rivals such as HPE.

The system runs on custom software, including a unique operating system for its servers called Helios.

Furthermore, the rack includes two switches using Intel silicon that can proactively redirect network traffic to avoid congestion. The hardware also features built-in resilience, automatically moving workloads from failing servers and correcting storage drive errors. Oxide Computer will use the new capital to enhance its product, expand manufacturing, and upgrade its logistics network to support a growing number of large customer orders for its private cloud solution.