Alphabet’s growth-stage venture arm CapitalG and chip giant Nvidia are in advanced discussions to invest in Vast Data, a New York-based AI infrastructure provider, in a funding round that could value the startup at up to $30 billion, according to two sources familiar with the matter. The deal, expected to close in the coming weeks, would position Vast Data among the most valuable AI startups as demand surges for high-performance data storage solutions powering artificial intelligence models.
Vast Data specializes in storage technology optimized for AI data centers, enabling efficient data transfer between GPUs like those made by Nvidia. Its clients include Elon Musk’s xAI and cloud computing firm CoreWeave, making it a key player in the AI supply chain. The company is raising several billion dollars from a mix of tech investors, private equity, and venture capital firms, signaling strong confidence in its growth trajectory.
The startup has seen rapid financial progress, reaching $200 million in annual recurring revenue (ARR) by early 2025, with projections to triple that figure next year. Having last raised funds at a $9.1 billion valuation in 2023, the new round could mark a 3x jump in just two years. While an IPO isn’t imminent, Vast Data has taken steps to prepare for a public listing, including hiring former Shopify CFO Amy Shapero to lead its financial strategy.
The investment talks highlight Nvidia’s expanding ecosystem beyond GPUs, following acquisitions like Mellanox and Run:ai. Meanwhile, CapitalG’s potential backing underscores Big Tech’s growing interest in AI infrastructure. With AI data center spending skyrocketing, Vast Data’s cost-efficient storage solutions could play a pivotal role in shaping the next phase of the AI boom.
