Nvidia and Alphabet's CapitalG in Talks for Investment in Vast Data

Nvidia and Alphabet's CapitalG are in talks to invest in Vast Data. No further details are provided in the article.

Nvidia (NVDA) and Alphabet's growth-stage venture arm, CapitalG, are in discussions to invest in artificial intelligence infrastructure provider Vast Data, according to two sources familiar with the matter [1]. The potential investment could value the startup at up to $30 billion, making it one of the most valuable AI startups.

Vast Data, a New York-headquartered company, develops storage technology specifically designed for large AI data centers. This technology enables efficient data movement between graphics processors (GPUs) made by companies like Nvidia. The company's clients include high-profile entities such as Elon Musk's xAI and CoreWeave (CRWV.O).

The funding round, which could close in the next few weeks, involves several billion dollars from tech giants, private equity, and venture capital investors. Both CapitalG and Nvidia are among the potential investors in this round. Vast Data has raised roughly $380 million to date, with its last funding round in 2023 valuing the company at $9.1 billion.

Vast Data's CEO, Renen Halak, has stated that the company is free cash flow positive. By January 2025, Vast Data had earned $200 million in annual recurring revenue (ARR), with projections to grow ARR to $600 million next year. The company has said it would consider an initial public offering (IPO) at the right time, and investors view it as a likely IPO candidate.

The involvement of CapitalG and Nvidia in Vast Data's funding round underscores the growing importance of AI infrastructure providers in the tech landscape. Nvidia, in particular, has been acquiring companies that add complementary software and hardware products to its flagship GPUs, such as Mellanox and Run:ai.

References:
[1] https://www.reuters.com/business/alphabets-capitalg-nvidia-talks-fund-vast-data-up-30-billion-valuation-sources-2025-08-01/
[2] https://www.marketbeat.com/instant-alerts/filing-drake-associates-llc-raises-stake-in-nvidia-corporation-nasdaqnvda-2025-08-01/