Oxide Computer Company Raises $200 Million in Series C Funding to Scale On-Prem Cloud Rack Business
February 10, 2026
Oxide Computer Company, a pioneer in rack-scale on-premises cloud computing, has secured $200 million in a Series C funding round led by the US Innovative Technology Fund (USIT). This significant capital infusion, coming less than a year after the company's $100 million Series B, underscores the growing market demand for alternatives to traditional public cloud and legacy infrastructure, offering enterprises greater control and efficiency.
The funding round, first reported by Axios and later confirmed by Oxide in a company blog post, was sourced entirely from the startup's existing investors. According to co-founders Steve Tuck and Bryan Cantrill, the investors were eager to provide further support as the business gained momentum. Tuck stated the capital would be used to scale operations and meet rising customer demand for "cloud ownership." In its announcement, Oxide emphasized its long-term vision, stating, "Our intent in starting Oxide was not to be an acquisition target but rather to build a generational company; this is our life’s work, not a means to an end." The company added that the new funding assures customers of its survival "into the indefinite future."
Founded in 2019, Oxide launched its flagship product in November 2023: an integrated rack system designed to deliver a public cloud-like experience within a customer's own data center. A single Oxide rack consolidates up to 64 servers, each equipped with a 64-core AMD CPU, 1.09 terabytes of RAM, and 64 terabytes of flash storage. The company claims its Helios operating system enables a full "private cloud" deployment in approximately two hours. With this latest $200 million raise, Oxide's total funding to date reaches $378 million across four rounds. Its customer base includes notable names such as colocation provider CoreSite, the Lawrence Livermore National Laboratory, and Switch.
The successful funding round highlights a strategic shift in the cloud infrastructure market, where enterprises are increasingly seeking the agility of cloud-native software combined with the security, predictability, and control of owned hardware. Oxide's model challenges the dominance of hyperscale public clouds and traditional server vendors by offering a fully integrated, subscription-based alternative. This substantial vote of confidence from investors signals a robust market for disaggregated, on-premises cloud solutions, particularly for organizations with stringent data governance, performance, or cost-efficiency requirements.
Source: datacenterdynamics
