Alphabet, Nvidia in talks to back AI firm Vast Data at $30 bn valuation

New York-based Vast Data builds storage systems for large AI data centres, optimising data transfer across GPUs like those from Nvidia. Clients include major names such as Elon Musk's xAI and CoreWeav

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Alphabet’s growth-stage venture division CapitalG and Nvidia are currently in discussions to invest in US artificial intelligence infrastructure firm Vast Data as part of a new funding round that may value the startup at as much as $30 billion, according to a report by Reuters.

 

  Vast Data is seeking to raise several billion dollars from major technology companies, private equity firms, and venture capital investors, potentially positioning it among the most valuable AI startups, as investors increasingly focus on the companies powering the AI revolution.

 

CapitalG and Nvidia, an existing investor, are expected to participate in the upcoming round, which could conclude within the coming weeks.

 

Notable clients: xAI, Nvidia 

Based in New York, Vast Data specialises in storage solutions tailored for large-scale AI data centres, facilitating efficient data flow across graphics processing units (GPUs) produced by firms such as Nvidia. The company’s client base includes notable names like Elon Musk’s xAI and AI cloud-computing startup CoreWeave. According to bankers and analysts, Vast Data’s strategic position within the AI supply chain enhances its appeal as a potential acquisition.

 

TechCrunch previously reported on Vast Data’s plans to raise capital. However, the possible $30 billion valuation and the involvement of CapitalG and Nvidia have not been disclosed until now.

 

Vast Data expected to reach $600 million in revenue 

Vast Data’s CEO, Renen Halak, has stated that the company is free cash flow positive. As of January 2025, it had achieved $200 million in annual recurring revenue (ARR), with a strong pipeline of orders and projections to reach $600 million in ARR the following year. To date, the company has raised approximately $380 million, and its most recent funding round in 2023 pegged its valuation at $9.1 billion.

 

IPO prospects on the horizon 

The company has indicated its openness to pursuing an initial public offering (IPO) when the timing is appropriate. In a move that could reflect IPO preparations, the company appointed its first chief financial officer, Amy Shapero—formerly CFO at publicly traded e-commerce company Shopify—last year. While early-stage firms like Weka and DDN are pursuing similar goals, industry executives and analysts assert that Vast Data’s technology is more developed than that of its competitors.

 

Storage infra lowers costs of AI models 

The company’s storage infrastructure combines flash storage components and other standard hardware with its proprietary software to optimise data access and movement. According to Vast Data, this architecture lowers the cost of developing and operating large-scale AI models.