Nvidia and Alphabet’s growth-stage fund CapitalG are reportedly in advanced talks to back AI infrastructure startup Vast Data in a major new funding round that could push the company’s valuation to as much as $30 billion, according to sources cited by Reuters.
According to the report, CapitalG and existing investor Nvidia are in talks to join the funding round, which is expected to wrap up in the coming weeks.
The report further stated, citing sources, that the AI infrastructure startup is actively raising several billion dollars from tech giants, private equity firms, and venture capital investors. This could position the company as one of the most valuable AI startups, aiming to establish itself as a core player in the rapidly expanding AI ecosystem.
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Vast Data appears to be on solid financial footing, with CEO Renen Halak reportedly stating the company is already generating positive free cash flow. By January 2025, its annual recurring revenue had hit the $200 million mark, and internal projections suggest that figure could triple to $600 million within the next year, according to a source with knowledge of the company’s financials. So far, Vast has secured around $380 million in total funding, with its most recent round in 2023, making its valuation at $9.1 billion.
In a move that hints at possible IPO ambitions, Vast Data brought on Amy Shapero as its first chief financial officer last year. Shapero previously served as CFO at Shopify, where she helped steer the e-commerce company through its public market journey.
Vast Data, founded in 2016 and headquartered in New York, builds data infrastructure designed to handle the demands of modern AI workloads. Its platform is engineered to deliver fast, reliable access to large volumes of data, which is essential for training and running advanced AI systems. The company’s technology supports efficient data movement between GPUs, such as those made by Nvidia, making it a key part of the backend powering today’s AI developments. Clients like Elon Musk’s xAI and CoreWeave already rely on its systems.
This New York-based startup is up against some serious competition in the race to power the future of AI. Big names like Dell Technologies and HPE are already in the game, offering enterprise-level storage systems built for high-performance computing. Pure Storage is another strong contender, especially known for its fast, flash-based solutions that cater well to AI-heavy environments. Then there are newer, cloud-native players like Weka and DDN, which are quickly gaining ground with storage platforms designed specifically for machine learning and large-scale data processing. It’s a fast-moving space, and Vast is competing head-to-head with some of the best in the business.