Oxide Computer raises $445M (SEC Form D)

(sec.gov)

110 points | by depr 2 hours ago

6 comments

  • shofetim 54 minutes ago
  • bithavoc 1 hour ago
    (VP of Eng here) I filled out their sales form last year and never heard from them. We're currently spending $900k/year on AWS, and they didn't even acknowledge my request. crazy stuff.
    • Sayrus 54 minutes ago
      We had the opposite experience. We contacted them through their form this year and they were happy to discuss with us even when we communicated from the beginning we wouldn't be customer in the short to medium term and even for single rack systems.
      • MichaelZuo 32 minutes ago
        How did that compare to the big firms? HPE, Dell, and so on.
        • esseph 31 minutes ago
          You don't go to oxide for lowest cost.
          • jiveturkey 4 minutes ago
            I think the idea is that, in fact, you do.

            Not one-time cost, but rather TCO.

    • jiveturkey 2 minutes ago
      Well that isn't that much. $1M / month feels more like it.
    • ahl 1 hour ago
      Hit me up @oxidecomputer.com
    • ellieh 59 minutes ago
      tbf they are probably looking for customers with cloud spend ending in 'm'
    • elzbardico 1 hour ago
      If your CIO is not ideologically averse on paying people instead of paying jeff bezos, you can save money even buying dell.
      • api 46 minutes ago
        You are 100% correct but you’d be shocked at the mortal terror that “self hosting” inflicts in the minds of even people who should really know better.

        Also forget Dell. Check out DataPacket.com and other metal hosters. You don’t need to physically rack unless you are huge or have special hardware or security needs.

        The cloud industry has done an incredible job at a kind of soft pervasive propaganda that running stuff is “hard.”

        • antonvs 21 minutes ago
          You’re expressing a very narrow engineer’s perspective that doesn’t consider the realities of managing bare metal hosting at any kind of scale.

          These are business decisions, made in terms of core competencies, capex vs. opex, and the difficulties and cost of building out a reliable, sustainable hosting operation that handles all the compliance and security requirements, and the full range of “ilities” that real businesses have to deal with.

          The fact that Bob in IT might be capable of doing some of this on his own doesn’t really enter into the picture. It’s not relevant.

          There’s a reason that most companies don’t operate their own electricity generation systems. Much the same is true for computing systems.

          • icedchai 13 minutes ago
            There are also many shades of gray between "big cloud" AWS/Azure/GCP and "my own rack" bare metal hosting.
    • Alien1Being 1 hour ago
      Logical.

      They probably will be aquihired by someone like Broadcom.

      • TimTheTinker 17 minutes ago
        I can't think of an outcome that would be more odious to Steve Tuck and Brian Cantrill. Brian in particular still talks about the soul-crushing experience of Oracle's hostile takeover of Sun Microsystems.
      • boomskats 45 minutes ago
        I expect the majority of Oxide's customers are actively trying to escape Broadcom's VMWare hell. Can't see how something like that would make sense.
        • a2ff6eeb0 29 minutes ago
          It makes sense for Broadcom to remove that avenue of escape, and it makes sense for Oxide's investors to charge a premium to Broadcom, and materialize their returns.

          The customers will have to deal with it, of course. At least they bought physical systems instead of renting them, so they can use them until they're obsolete.

        • MisterTea 43 minutes ago
          Makes sense for Broadcom.
      • dkbrk 20 minutes ago
        I doubt that. Oxide was founded by a bunch of ex-Sun people who have already been burned by the Oracle acquisition. If you read through what they say, their company values, and how they act, it's pretty clear their intent is to grow a sustainable long-term business and they're not looking for an exit.
        • senderista 3 minutes ago
          VC funding is not for "a sustainable long-term business".
    • api 47 minutes ago
      Say you are spending $1M. Round up. Or even 0.9M. Their sales might only return inquiries with cloud costs ending in M.
  • LennyWhiteJr 1 hour ago
    I will implicitly trust anything Jessie Frazelle works on. Rare combination of taste, skill, and passion.
    • Aurornis 24 minutes ago
      She stepped down several years ago.

      She was still listed as an advisor in some capacity, but she moved on to a different startup.

    • sscarduzio 51 minutes ago
      yep, another fan here!
  • fishgoesblub 2 hours ago
    I've seen posts about Oxide for years now, but do they actually ship hardware? I've never seen images, or posts about companies with their new Oxide Thingamajig™
    • ahl 1 hour ago
      We've shipped kind of a lot of hardware at this point!
    • throw0101d 1 hour ago
      The CEO of Shopify tweeted about it at one point:

      * https://twitter.com/tobi/status/1793798092212367669

    • vsgherzi 1 hour ago
      as far as I can tell, yes?

      It seems like Jane street and lawrence national laboratory are two confirmed customers.

      • fishgoesblub 1 hour ago
        With those two names it makes more since that I haven't seen anything regarding their use. Not exactly Joe Schmoe LLC as customers.
        • mihaelm 1 hour ago
          Joe Schmoe LLC will probably do just fine by sticking to popular clouds. I reckon adopting Oxide Computer would pay off at much larger volumes of traffic, or if you have to do on-prem due to regulatory reasons.

          It would be nice to know more about pricing so the Enthusiast Joe can have a better idea, but it's more a boutique vibe right now.

    • esseph 30 minutes ago
      Most of their customers wouldn't be the type to let others know.
  • bkolobara 57 minutes ago
    They just raised $200M in February and $100M a year ago.
    • dgellow 37 minutes ago
      Preparing for an IPO maybe?
      • newsclues 14 minutes ago
        Funding RAM purchases...
  • mmmwonderasj 1 hour ago
    [dead]