The initial oxide state of powder is essential to the robust additive manufacturing of metal components using powder bed fusion processes. However, the variation of the powder surface oxide composition as a function of the atomizing medium is not clear. This work summarizes a detailed surface characterization of three 316L powders, produced using water atomization (WA), vacuum melting inert gas atomization (VIGA), and nitrogen atomization (GA). X‐ray photoelectron spectroscopy (XPS) and scanning electron microscopy analyses were combined to characterize the surface state of the powders. The results showed that the surface oxides consisted of a thin (~4 nm) iron oxide (Fe2O3) layer with particulate oxide phases rich in Cr, Mn, and Si, with a varying composition. XPS analysis combined with depth‐profiling showed that the VIGA powder had the lowest surface coverage of particulate compounds, followed by the GA powder, whereas the WA powder had the largest fraction of particulate surface oxides. The composition of the oxides was evaluated based on the XPS analysis of the oxide standards. Effects of Ar sputtering on the peak positions of the oxide standards were evaluated with the aim of providing an accurate analysis of the oxide characteristics at different etch depths.