Oxide Computer Company, the Emeryville startup that builds rack-scale cloud computers for corporate and government data centers, has raised $445 million in a Series D funding round. The company says demand for its hardware is outrunning its ability to build it, even after a massive push to scale up manufacturing over the past year.
The round was led by Eclipse, according to a company announcement distributed via PR Newswire, with existing backers US Innovative Technology Fund, Riot Ventures and Jane Street returning to the table. Two new investors, Atreides Management and AMD Ventures, also joined the round, per the same release. As FinSMEs reported, the Emeryville, California-based company builds its on-premises cloud computing platform for customers who want to run hyperscale-style infrastructure inside their own walls rather than renting it from a public cloud provider.
Oxide's pitch is a tightly integrated bundle of hardware and software, built as a single rack rather than assembled from off-the-shelf parts. The company co-designs compute, storage, networking and software as one system, according to the prnewswire.com release, aiming to give enterprises the automation and agility of the big cloud providers while letting them keep direct ownership over security, performance, data and economics. Each rack contains 24 hardware modules known as sleds, according to SiliconANGLE, which also reported that Oxide plans to develop a version of that sled capable of hosting a graphics card.
Orders Piling Up Faster Than Racks Can Ship
The company told backers that despite scaling manufacturing capacity twentyfold over the prior 12 months, demand still exceeds supply, per the prnewswire.com release. In its own blog post announcing the round, Oxide said it has a very large order backlog and that, with demand far exceeding supply, significant cash is needed to secure inventory and fulfill those orders, according to a post on the company's blog. The same post states the new capital builds toward satisfying that backlog while continuing to accept new demand, expand manufacturing capacity and invest in the company's longevity and independence.
Oxide also said in the prnewswire.com announcement that it reached profitability earlier this year, calling it a significant milestone. Forbes reported, citing a person familiar with the company, that Oxide's revenue has grown into the hundreds of millions, up from single-digit millions a year earlier — though that figure was not corroborated by other sources reviewed for this story. Forbes separately reported, also via a person familiar with the company, that Oxide now ships 200,000 servers a month, up from 10,000 a year ago; that number likewise was not confirmed elsewhere.
Why Companies Want to Own Their Own Cloud
The surge in interest reflects a broader shift playing out across the tech industry. Global compute shortages and rising public cloud costs are making large enterprises rethink the own-versus-rent argument, according to Axios. Forbes reported that the round valued Oxide at $6 billion. Oxide's customer base spans financial services, government, national laboratories, aerospace and other compute-intensive industries, the prnewswire.com release states.
Forbes reported that one defense technology company using Oxide's systems brought its costs down by more than 70%, citing a rate of 6 cents an hour for Oxide racks compared with 26 cents an hour charged by AWS. Founded in 2019 and based in Emeryville, Oxide has now raised capital across multiple rounds: $100 million in its Series B, according to DataCenter Dynamics, and $200 million in a round closed in February 2026 that was led by USIT, per SiliconANGLE's report.
Where the New Money Goes
Oxide says the fresh $445 million will go toward securing components, increasing manufacturing capacity and supporting both new and existing customers, according to the prnewswire.com release. For a company whose core promise is building hardware fast enough to match runaway enterprise demand, the next test will be whether this latest infusion finally lets its factory floor catch up to its order book.
