Announcing Our $445M Series D Funding

Date: October 9, 2026
Company: Oxide Computer Company

Earlier this spring, we achieved a milestone that is, frankly, quite unusual for a company in our position: Oxide paid its income taxes.

This wasn't the result of a one-off windfall or a strange accounting quirk. Rather, it happened because our core business—the act of building and selling computers—generated actual taxable income. This remained true even after we subtracted the costs of salaries, manufacturing, component procurement, and general operational overhead.

The Startup Paradox

To most people, paying taxes is a mundane annual chore. But in the world of venture-backed startups, it is a rarity. Why? Because the vast majority of startups are not profitable designed to burn cash.

Typically, startups require external funding because their expenses precede their revenue by a wide margin. In the VC world, profitability is viewed as a lagging indicator of product/market fit. Investors usually bet on a vision long before the actual business model manifests as a positive balance sheet.

"Most startups don't pay income tax because most startups aren't profitable!"

We can represent the basic logic of our current state with this simple formula: $\text{Revenue} - (\text{Components} + \text{Labor} + \text{OpEx}) = \text{Taxable Income} > 0$

The Hardware Hurdle

Despite our profitability, we find ourselves in a position that would make Russ Hanneman nervous: we have a massive backlog of orders. While it is exhilarating to see the business generate its own cash, the sheer volume of demand has created a specific financial challenge.

In the hardware industry, there is a significant time gap between paying for parts and receiving payment from the customer. This "cash gap" is illustrated below:

While our previous Series B and C rounds, combined with our debt facilities and internal cash flow, were sufficient for our existing backlog, we reached a point where we had to be cautious. As veterans of the Dot Com bust, we are naturally risk-averse. We refused to let the business become vulnerable to:

• Unexpected supply chain disruptions
• Macroeconomic shocks
• External volatility

Solving the Problem with Capital

This is exactly where venture capital provides the most value. Our investors recognized the burgeoning demand and wanted to ensure Oxide was positioned to capture the full scale of the market.

Eclipse once again stepped up to lead the round, resulting in a $445M Series D.

The Investor Landscape

We are particularly excited about our new partners:

1. Atreides Management: We admire their rigorous analytical framework and their bravery in the "hard-tech" sector.
2. AMD: A long-term strategic partner. AMD helped us achieve critical milestones, such as our platform enablement software, and we, in turn, placed an early, heavy bet on AMD EPYC processors.

Looking Ahead

When we secured our $200M Series C, the goal was to "de-risk" the company to ensure our independence and longevity. This Series D expands that safety net.

Our current objectives include:

• Satisfy the existing order backlog
• Continue accepting new customer demand
• Scale up manufacturing capacity
• Invest in the long-term infrastructure of the company

To check our current operational status:

oxide-status --check-funding
# Output: Series D Complete | Capital: $445M | Status: De-risked

To our employees, our loyal listeners, our partners, and most importantly, our customers: thank you. This is a thrilling step on the long journey toward the future of Oxide.