Alphabet and Nvidia in Talks to Back Vast Data at $30 Billion Valuation
Alphabet’s CapitalG and Nvidia are reportedly in advanced talks to invest in AI infrastructure firm Vast Data, potentially valuing the company at $30 billion. According to Reuters, this new funding round may conclude within weeks and includes participation from both major tech companies and private equity investors. If successful, the deal would make Vast Data one of the most highly valued AI startups globally.
The timing of this investment highlights how the AI boom is expanding beyond model developers and into infrastructure providers. While many companies focus on applications, investors are increasingly turning their attention to those building the foundations of the AI ecosystem.
Vast Data, based in New York, specialises in high-performance storage systems for AI data centers. Its technology is designed to optimise data movement across GPUs, including those made by Nvidia. Clients include Elon Musk’s xAI and CoreWeave, a prominent cloud-based AI computing firm. Analysts say the company’s core position in the AI infrastructure space makes it an attractive acquisition target, especially as demand for scaled AI systems grows.
Strong Revenue Growth and Strategic Backing
Vast Data’s growth trajectory is impressive. As of January 2025, the company reached $200 million in annual recurring revenue (ARR), and it expects to hit $600 million in ARR by next year. The firm is also free cash flow positive, which further adds to its financial appeal. According to CEO Renen Halak, customer demand remains strong, supporting both expansion and future investment opportunities.
So far, the company has raised around $380 million. Its last funding round, completed in 2023, valued it at $9.1 billion. However, the current round, with backing from Nvidia and potentially CapitalG, may significantly boost that figure.
Although TechCrunch previously reported on the company’s intent to raise more capital, the inclusion of Alphabet’s CapitalG and the projected $30 billion valuation are new developments. These changes reflect not only Vast Data’s momentum but also a shift in how the market values core infrastructure in the AI space.
IPO Readiness and Technology Edge
With momentum building, Vast Data is reportedly considering an initial public offering (IPO) when market conditions align. To support this goal, the company appointed Amy Shapero former CFO of Shopify as its first chief financial officer. The move is widely viewed as a sign of IPO readiness.
Unlike early-stage competitors such as Weka and DDN, Vast Data is seen as technically ahead. Industry analysts argue that its proprietary software and use of standard hardware deliver superior performance and lower operating costs.
The company’s architecture blends flash storage with its custom software stack. As a result, it enables faster data access and more efficient movement, which are critical for training and running large-scale AI models. According to Vast Data, this not only enhances speed but also significantly reduces the cost of AI development something both investors and clients find increasingly valuable.
