03 August, 2025 : By Ajoy Maitra

AI storage company Vast Data is reportedly in advanced discussions with tech giants Alphabet's CapitalG and chip powerhouse Nvidia for a funding round that could catapult the startup's valuation to an unprecedented $30 billion, making it one of the most valuable private technology companies globally.

Strategic Investors Circle AI Infrastructure

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The New York-based artificial intelligence infrastructure provider is negotiating with Alphabet's growth-stage venture arm CapitalG and existing investor Nvidia for what could be a multi-billion-dollar investment. This represents a dramatic leap from Vast Data's previous $9.1 billion valuation in 2023, underscoring the explosive growth potential investors see in AI infrastructure companies.

AI-powered businesses need thinking machines designed for a future where billions of AI agents learn from their own experiences, fine-tune in real time, and create new possibilities through collaboration

Jeff Denworth, Co-Founder of VAST Data

The timing couldn't be more strategic. As artificial intelligence applications demand increasingly sophisticated data storage and processing capabilities, companies like Vast Data have positioned themselves as critical enablers of the AI revolution. Vast Data develops storage technology that claims to enable efficiency in AI data centers, addressing one of the most pressing bottlenecks in AI deployment.

Impressive Financial Trajectory

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The company's financial performance supports its lofty valuation ambitions. Sources indicate that Vast Data achieved $200 million in annual recurring revenue (ARR) by January 2025, with aggressive projections to triple that figure to $600 million in ARR next year. This growth trajectory, combined with the company's claim to be free cash flow positive, presents a compelling investment thesis for deep-pocketed investors.

Having raised $380 million to date, Vast Data has demonstrated prudent capital management while scaling its operations. The potential new funding round represents a significant escalation in investment scale, reflecting both the company's maturation and the market's appetite for AI infrastructure plays.

LOOKING AHEAD - Market Context and Timing

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As the AI boom intensifies and the U.S. government greenlights the scaled build-out of data centers, AI infrastructure startups are becoming a hot new focus for investment. This regulatory and market environment creates favorable conditions for companies positioned at the intersection of AI and critical infrastructure.

For Nvidia, the investment aligns perfectly with its strategic positioning as the dominant AI chip manufacturer. Supporting companies like Vast Data creates a symbiotic ecosystem where advanced storage solutions complement Nvidia's processing capabilities.

Similarly, Alphabet's involvement through CapitalG reflects the search giant's broader AI strategy and its need for robust infrastructure to support its own AI initiatives.

VAST has become the de facto standard for the data platform of AI clouds/GPU clouds. That’s no surprise from a company that continues to deliver simple solutions to make data more meaningful, helping organizations unlock both intelligence and utility.

Steve Johansson, Managing Director, Data Breakthrough

The round could close in the next few weeks, according to industry sources. If successful, this funding would not only provide Vast Data with substantial capital for expansion but also validate the broader AI infrastructure investment thesis.

The potential $30 billion valuation would place Vast Data among the most valuable private technology companies globally, signaling a new phase of maturity for AI infrastructure investments. This development underscores a broader trend where AI infrastructure companies are commanding premium valuations, reflecting their critical role in enabling the next generation of artificial intelligence applications.