Vast Data Seeks $30B Valuation with CapitalG & NVIDIA Funding Talks
AI infrastructure firm Vast Data is reportedly in advanced discussions with CapitalG, Alphabet’s growth investment arm, and existing investor NVIDIA, to raise a new funding round that could value the company at up to an astonishing $30 billion. This potential deal would significantly boost the valuation of the New York-based company, which was last valued at $9.1 billion in 2023. If completed, this would mark one of the largest funding rounds in Israeli tech history, given Vast Data’s R&D centers in Tel Aviv and Haifa.
Vast Data specializes in building storage systems optimized for AI data centers, positioning itself as a key enabler of large-scale AI workloads. The company’s core offering is its proprietary DASE (Disaggregated, Shared Everything) architecture, which unifies storage, compute, and database layers into a single, globally consistent system. This approach is designed to eliminate performance bottlenecks and enable real-time access to massive, diverse datasets—including unstructured data like text, images, and video—which is crucial for training and operating advanced AI models. Vast Data asserts that its AI Operating System (AI OS) can deliver a 50% lower total cost of ownership for AI workloads compared to traditional systems.
The company has demonstrated impressive financial performance, having already raised approximately $380 million in total funding. As of January 2025, Vast Data reported $200 million in annual recurring revenue (ARR), with projections to reach $600 million in 2026. Notably, the company is free cash flow positive, a rare achievement for a rapidly growing AI startup. Its customer base includes prominent entities such as the U.S. Air Force, the Department of Energy, Booking Holdings, Zoom, Pixar, Boston Children’s Hospital, and Elon Musk’s AI startup xAI. Vast Data’s contracts typically span 5-7 years, contributing to its low churn rate.
NVIDIA’s continued interest in Vast Data, having been an existing investor, underscores the strategic importance of AI infrastructure. NVIDIA’s investment strategy focuses on supporting the AI ecosystem through corporate investments, its venture capital arm NVentures, and its Inception program for startups. NVIDIA CEO Jensen Huang has publicly highlighted how Vast Data’s technology enhances GPU performance, calling it a critical enabler for large-scale AI model deployment. The two companies have also collaborated on products like InsightEngine, a platform aimed at making storage and data infrastructure a driving force for business AI applications.
CapitalG, Alphabet’s independent growth fund, typically invests between $50 million and $200 million in growth-stage companies, providing not only capital but also operational and strategic support. Their potential investment in Vast Data signals Alphabet’s broader strategy to bolster core AI technologies and compete in the artificial intelligence computing space.
This anticipated funding round reflects a significant shift in investor focus towards the foundational technologies underpinning the AI revolution. As industries globally ramp up AI integration, the demand for robust data storage and processing solutions like those offered by Vast Data is soaring, making AI infrastructure a prime area for investment. While an IPO is not imminent, Vast Data’s strong financials and the appointment of Amy Shapero, Shopify’s former CFO, in 2024, are seen by industry observers as signals of potential future public listing readiness.