Vast Data Nears $30B Valuation with Alphabet, Nvidia Funding Talks

AI storage platform Vast Data is reportedly in advanced discussions with Alphabet’s venture capital arm, CapitalG, and existing investor Nvidia, to secure a new funding round that could value the New York-based startup at up to $30 billion. This potential valuation marks a significant increase from its last valuation of $9.1 billion in 2023.

According to Reuters, citing two sources familiar with the matter, the funding round could finalize within the coming weeks. This development follows a TechCrunch report last month indicating that Vast Data was seeking funds at a $25 billion valuation. If confirmed, a $30 billion valuation would position Vast Data among the most valuable privately held technology companies globally.

Vast Data specializes in developing storage technology designed to enhance efficiency within AI data centers. The company’s solutions are becoming increasingly critical as the global AI boom intensifies, driving unprecedented demand for robust and scalable infrastructure. With governments, including the U.S., actively supporting the large-scale build-out of data centers, AI infrastructure startups like Vast Data have emerged as a prime focus for investment.

The company has raised a total of $380 million to date. CEO Renen Hallak has stated that Vast Data is free cash flow positive, indicating a strong financial position. Further underscoring its growth, sources informed Reuters that Vast Data generated $200 million in annual recurring revenue (ARR) by January 2025, with ambitious projections to grow that figure to $600 million in ARR next year. This rapid revenue growth, combined with its strategic position in the AI infrastructure market, appears to be a key driver behind the soaring valuation discussions.