Data center hardware startup Oxide Computer raises $100M

Oxide Computer Co., a supplier of hardware for on-premises data centers, today announced that it has raised $100 million in funding.

US Innovative Technology Fund led the Series B round. It was joined by all of Oxide’s existing backers including Intel Capital.

Oxide’s flagship product is a 1.15-ton data center rack called the Oxide Cloud Computer. It ships with up to 64 servers that each contain a 64-core processor from Advanced Micro Devices Inc. The chip is supported by up to 1.09 terabytes of memory and 64 terabytes of flash storage.

One of the Oxide Cloud Computer’s selling points is that it’s relatively simple to use. According to the company, setting up the system takes about two hours. From there, developers can provision hardware resources for workloads through an application programming interface much like in the cloud.

Many of the system’s components were developed in-house by Oxide. That includes the service processor, a module responsible for managing the flow of power to servers and detecting technical issues. Oxide says that its service processor lacks many of the features included in off-the-shelf alternatives. That makes it easier to manage and creates fewer opportunities or hackers to find vulnerabilities.

The Oxide Cloud Computer’s service processor is powered by a custom operating system that the company open-sourced in 2020. The system’s 64 servers, in turn, run another custom operating system dubbed Helios. The latter platform is based on a Linux alternative called Illumos.

The servers in an Oxide Cloud Computer are linked together by two switches based on Intel Corp. silicon. According to Oxide, the switches can detect when a network link is about to become congested and redirect traffic to other connections. A firewall built into the switches filters packets that may pose a cybersecurity risk.

Oxide says that its system can automatically recover from certain types of hardware failures. When a server is about to malfunction, the onboard software moves the workloads it runs to another machine. The Oxide Cloud Computer’s storage engine, meanwhile, regularly checks its flash drives for errors and fixes them. 

“This round gives us the ability to scale confidently and sustainably in step with accelerating customer growth,” said Oxide co-founder and Chief Executive Officer Steve Tuck.

The company will use the capital to enhance the Oxide Cloud Computer, as well as grow its manufacturing capacity. According to Reuters, Oxide is also upgrading its logistics network to address a recent increase in large customer orders. Some of those customers are reportedly buying hundreds of Oxide Cloud Computers. 

Photo: Oxide