In the spring, Oxide reported that its ordinary operations—selling computers—generated taxable income after accounting for component costs, manufacturing expenses, salaries and other business expenses, prompting the company to pay income tax. The blog post notes that most startups do not pay income tax because they are not yet profitable, highlighting Oxide’s milestone as unusual for an early‑stage hardware firm.
The company also described a substantial order backlog, with demand far exceeding current supply. To fulfill these orders, Oxide needs to commit cash to components and manufacturing well before systems reach customers. While existing capital from its Series B, Series C, debt facilities and cash generated by the business was seen as sufficient to cover the current backlog, the absolute scale of the orders meant that accepting additional demand would require caution, especially given the founders’ experience from the Dot Com bust.
Investors viewed the situation as a case where capital could help. Eclipse took the lead in organizing a $445 million Series D round. Existing backers USIT, Riot Ventures, Jane Street, Friends and Family Capital and Counterpart participated with sizable allocations. Oxide also sought new investors; Atreides Management, which had been acquainted with the company for nearly two years, was selected for its analytical approach and experience in hard‑tech investing.
AMD joined as a new strategic investor. The post recalls AMD’s earlier support that enabled Oxide to develop its platform enablement software and notes Oxide’s early bet on AMD EPYC processors. Both companies view the partnership as long‑term.
The Series D builds on the goal expressed during the $200 million Series C raise—to de‑risk the company with respect to capital, assure longevity and preserve independence. The new funding is intended to allow Oxide to satisfy its substantial backlog, continue accepting new demand, expand manufacturing capacity and invest in the enduring business it has aimed to build.
The blog concludes with thanks to investors, partners, fans, employees and customers, describing the round as a milestone on the longer path toward Oxide’s future.
Key facts
- Oxide paid income tax from ordinary operations in spring.
- The company has a large order backlog with demand exceeding supply.
- Eclipse led a $445 million Series D round.
- Participating investors: USIT, Riot Ventures, Jane Street, Friends and Family Capital, Counterpart, Atreides Management and AMD.
- Atreides Management had known Oxide for nearly two years.
- AMD is a new strategic investor, having previously supported Oxide’s platform enablement software and EPYC adoption.
- The round aims to meet the backlog, accept new demand, expand manufacturing capacity and support long‑term independence.