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Posted by igrunert 14 hours ago

Oxide raises $200M Series C(oxide.computer)
524 points | 282 commentspage 4
aus10d 6 hours ago|
I like this!
panick21_ 12 hours ago||
Wow, amazing. That some serious money. Everybody gets a raise hopefully. Congrats everybody.

What to do with so much money?

An AI product is of course the 'no-brainer', I would love to see them partner with Tenstorrent for the CPU/AI part. I think Bryan described this as Door 3 'doing something crazy'.

A product around AMD APU was talked about, but in a recent talk Brain said AMD doesn't seem to care about that product.

OpenTitan is now getting ready for production uses, maybe makes sense to switch to that in the future. Moving Hubris onto that shouldn't be to big of a lift.

A conventional server without DC bus bar maybe? Not talking about homelab server but something in a class where you can't have a whole rack and the bus bar. The main seller would be the fireware and software ontop to get people into the control plane ecosystem. And you could make Linux boot on it too for more market reach potentially. I'm not sure how much such a platform could share with current system.

An SSD or NIC with open fireware would be great, but not sure if you can develop that only for your own product or if you would want to sell it separatly to make sense. But that would be big departure from the current All-in-One product.

Amazing what you can do when all you try to do is make podcast. Maybe now they have money to bring back 'On the Metal'. I enjoyed the more structured interview style podcast about history of computing quite a bit. That said the more discussion oriented 'Oxide and Friends' is also nice.

mrcwinn 12 hours ago||
Amazing, and all employees literally have equal equity, just like they did for salaries! Bravo.
Aurornis 12 hours ago||
> and all employees literally have equal equity

In previous HN threads they said that equity was not equal for all employees.

g-b-r 12 hours ago||
Not equity, last I heard
colesantiago 13 hours ago||
I'm confused and saddened on why Oxide has to keep raising money (in substitute for growth) and keep entrenching their business with VCs and letting them control business and ownership.

> "So if we didn’t need to raise, why seek the capital? Well, we weren’t seeking it, really. But our investors, seeing the business take off, were eager to support it."

From this of course the VCs will back and support Oxide (they are mentally thinking that Oxide will move into supplying hardware for AI datacenters) eventually want their money back at many many multiples and the pressure is there to achieve this.

Can you even invest in Oxide?

I just wish Oxide wouldn't have to keep getting owned by VCs which would inevitably lead to enshittification to pay back the VCs.

If Oxide followed the model of Valve (100% founder and employee ownership, profitable, vast unlikelihood of enshittification or pressure to get acquired or IPO) then it would be a different situation.

neom 13 hours ago||
How could a massively capex business like Oxide scale in the same manner that Valve did based on the current market movement of the industry that Oxide is addressing? I personally cannot see how that is at all possible. The cash required to back downstream capital in a business like this as it scales without it falling flat is surly well in excess of $6/700MM, if they manage to get by with with only selling 300/400 million of equity, that will be a great outcome for the founders.
colesantiago 12 hours ago||
Unfortunately since they already took VC money they have to keep doing it and each time they do it they do it the VCs would own more and more and would control the business.

I predict in less than 10 years Oxide exits by way of being acquired or an IPO. The enshittification would have already begun by then.

> You seem very sure of yourself in how business works! I'm curious now, how did you create your $100MM++ revenue hardware business? I'd love to learn from you. [deleted]

You don't need to create a $100MM++ revenue hardware business to know how this ends when you get into bed too many times with VCs.

We already know it is a huge capex spend (which is why they keep going to VCs) the question is, how many times does Oxide need to go back to VCs to keep raising (even though they said they didn't need to raise?)

I hope they become immensely profitable enough to buy out the VCs stakes and get control back and become independent.

But I am doubtful that Oxide will do that if they keep raising and they will just be sold down the river in less than 10 years.

Aurornis 13 hours ago|||
There’s nothing confusing about it. Hardware businesses require a lot of capital to build the hardware.
colesantiago 13 hours ago||
I don't see Hetzner getting into bed with VCs and raising $100M or $200M?

How long until Oxide needs $2BN, $4BN or $8BN from VCs, further getting owned by them?

neom 13 hours ago||
K, well I was on the first/founding team of digitalocean and owned strategy there from zero to just before IPO, we took a bunch of venture, heck if you'd seen our covenants in our lease lines, they made our venture debt look like kittens, yet we IPO'd, and I don't think very many in the digitalocean story are particularly unhappy? VCs do not try to "own companies" they try to exit businesses at a gain.
colesantiago 12 hours ago||
> VCs do not try to "own companies" they try to exit businesses at a gain.

They do both as they need many multiples to return the fund.

And it also sounds very predatory to me and not aligning with any startup's mission other than for the VCs to pressure Oxide to get acquired for over $20BN+ or go to the public markets.

Not even Hetzner did this. DigitalOcean could have followed Hetzner, but I guess VC money is very attractive and now DigitalOcean is now the slave of Wall St.

Going into deals with VCs and IPO'ing to Wall St. always leads to enshittification.

dcre 13 hours ago||
Valve is primarily a software company with zero marginal cost to a game sale.
temptemptemp111 12 hours ago||
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builderhq_io 13 hours ago||
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eigenspace 13 hours ago||
[flagged]
benjijay 13 hours ago||
Very cryptic; what are you actually saying here?
rutierut 13 hours ago|||
Poster is not from the US and has no interest in relocating due to the current political situation. This is a common sentiment among non-US but western professionals right now. Had the location been different, they probably would have been interested.
eigenspace 13 hours ago|||
Sorry for being unclear. I just meant that I am always interested to hear about up-and-coming cloud providers, but I wouldn't touch one that's based out of the USA.
drstewart 13 hours ago||
You shouldn't touch HN either. It's based out of the US. You would own fascists so hard by deleting your account.
wasmainiac 13 hours ago||
Why? I don’t get it.
notachatbot123 13 hours ago||
Oxide is based in the United States of America. An unjust, failed democracy in a downward spiral to fascism.
wasmainiac 13 hours ago||
Have some hope, but thanks.
singularfutur 10 hours ago||
Another $200M for a company whose product most developers will never touch. VCs continue to confuse "hardware that sounds cool" with "business that makes money". This ends one of two ways: acqui-hire or Chapter 11.
linksnapzz 9 hours ago||
Most developers won't know if they're touching it or not, given their market.
panick21_ 2 hours ago||
Most developers never touch a mainframe or a nvidia h200 either. So were they bad investments? Neither do most developers touch a Cisco Core Router.

Amount of developers touching a specific piece of hardware is mostly unrelated to business success.

The real question is, are there big company with lots of money that buy your product.

wmf 10 hours ago|
It's been six years and they still won't say "it's Nutanix but better". Is it not better? Does the "we akshually don't have competitors" approach work with customers?
kev507 8 hours ago||
I don't think we'd ever go with the "we don't have competitors" line, it's not serious. The competition is more AWS, GCP, and Azure than it is Nutnaix though, they can't provide a similar experience or economic value when they don't make or control their own hardware. That doesn't mean we never see Nutnaix, but it's not the most apt comparison. As Alan Kay famously said, "People who are really serious about software should make their own hardware" - otherwise you'll be stuck at the intersection of support and scaling pains long term.
panick21_ 2 hours ago||
What company specifically mentions its competitors in its advertisements? Do you expect the homepage of the company to be a list of links to its competitors? What is this absurd expectation?