Alphabet and NVIDIA Mull Investment in AI Infrastructure Startup Vast Data

Alphabet's CapitalG and NVIDIA are reportedly in talks to invest in AI infrastructure startup Vast Data, valued at up to $30 billion. Vast Data specializes in storage technologies for large-scale AI data centers, serving clients like Elon Musk's xAI and CoreWeave. The investment round is expected to conclude in a matter of weeks.

Alphabet's growth-stage venture arm, CapitalG, and NVIDIA are reportedly in advanced talks to invest in AI infrastructure startup Vast Data, with a potential valuation of up to $30 billion [1]. The investment round is expected to conclude in a matter of weeks.

Vast Data specializes in storage technologies designed for large-scale AI data centers, serving clients such as Elon Musk's xAI and CoreWeave. The company's unified data platform eliminates traditional tiered storage systems, allowing AI data centers to access vast datasets rapidly. This technology is crucial for handling the increasing complexity of AI models, which require high-performance, scalable, and cost-effective storage solutions [2].

The involvement of CapitalG and NVIDIA underscores the deep integration between AI compute and AI storage. NVIDIA's GPUs power the computational needs of AI models, while Vast Data's storage solutions ensure these models have immediate access to the data they require to function optimally [2]. For CapitalG, the investment aligns with Alphabet's broader strategy to support core AI technologies [2].

The potential $30 billion valuation for Vast Data is a significant jump from its $9.1 billion valuation in 2023, highlighting the growing investor confidence in the AI infrastructure market [1]. The company has raised approximately $380 million in funding to date and is free cash flow positive. As of January 2025, it reported $200 million in annual recurring revenue, with projections to reach $600 million in the following year [1].

This funding round has broader implications for the tech and investment landscape. It shifts investor focus from application-layer AI to the foundational technologies that enable it, reinforcing the importance of AI storage and compute infrastructure [1]. The trend mirrors historical patterns in tech investment, where foundational “picks and shovels” companies gain prominence during periods of rapid innovation [1]. This development also underscores the intensity of capital flows into AI and could influence related sectors, including cryptocurrency, where AI infrastructure plays a growing role [1].

The potential $30 billion valuation for Vast Data is more than just a financial milestone—it reflects the company’s critical role in powering the global AI revolution. As artificial intelligence becomes increasingly embedded in industries and daily life, the demand for efficient and scalable data storage will continue to rise. Vast Data’s technology is at the forefront of this evolution, providing the infrastructure necessary to support the next generation of AI data centers [1].

References:
[1] https://finance.yahoo.com/news/exclusive-alphabets-capitalg-nvidia-talks-100423131.html
[2] https://www.ainvest.com/news/vast-data-eyes-30-billion-valuation-major-ai-storage-funding-2508/