Vast Data Seeks Valuation of Up to $30bn with Nvidia and Alphabet's CapitalG Investment

CapitalG and Nvidia are reportedly considering an investment in Vast Data, a company that specializes in AI infrastructure and storage solutions. The investment is expected to value Vast Data at up to $30bn. Vast Data has raised approximately $380m and achieved $200m in annual recurring revenue by January 2025, with projections estimating this figure to rise to $600m in 2026. The company is cash flow positive and has hinted at a possible initial public offering (IPO) in the future.

CapitalG, the venture arm of Alphabet, and Nvidia are reportedly considering a significant investment in Vast Data, an AI infrastructure and storage solutions company. The potential investment could value Vast Data at up to $30 billion, according to Reuters [1]. This move follows recent reports indicating that Vast Data is in talks with investors for a new round of financing, with the company's valuation potentially reaching $30 billion [2].

Vast Data specializes in storage technologies optimized for large-scale AI data centers. The company's technology facilitates efficient data exchange between GPUs, such as those from Nvidia, making it a critical player in the AI supply chain. The involvement of CapitalG and Nvidia underscores the deep integration between AI compute and storage, as 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 [3].

The company has achieved notable financial milestones. As of January 2025, Vast Data reported $200 million in annual recurring revenue (ARR), with projections estimating this figure to rise to $600 million in 2026 [1]. The company is cash flow positive and has raised approximately $380 million in previous funding rounds, including a recent round that valued the company at $9.1 billion in 2023 [4]. These developments highlight Vast Data's strong growth trajectory and potential for future success.

The potential $30 billion valuation for Vast Data reflects the growing investor confidence in the AI infrastructure market. This funding round shifts investor focus from application-layer AI to the foundational technologies that enable it, reinforcing the importance of AI storage and compute infrastructure [3]. The involvement of major tech companies like Alphabet and Nvidia underscores the strategic value of Vast Data's technology in the AI ecosystem.

Vast Data's technology is crucial for handling the increasing complexity of AI models, which require high-performance, scalable, and cost-effective storage solutions. The company's architecture leverages flash storage devices and standard hardware alongside proprietary software to manage data access and movement efficiently, lowering the costs of developing and operating large AI models [4].

While the company has not responded to recent reports, the appointment of an experienced CFO with a background in listed companies hints at a possible initial public offering (IPO) in the future. Market observers regard Vast Data as a probable IPO candidate, but no immediate plans for listing have been announced.

In conclusion, the reported investment talks between CapitalG and Nvidia for Vast Data represent a significant development in the AI infrastructure market. The potential $30 billion valuation underscores the company's strategic position and growth potential, positioning Vast Data as a key player in the AI supply chain.

References:
[1] https://finance.yahoo.com/news/vast-data-talks-alphabet-capitalg-132126494.html
[2] https://www.techzine.eu/news/infrastructure/133478/alphabet-and-nvidia-are-considering-a-multi-billion-dollar-investment-in-vast-data/
[3] https://www.ainvest.com/news/alphabet-nvidia-mull-investment-ai-infrastructure-startup-vast-data-2508/
[4] https://finance.yahoo.com/news/capitalg-nvidia-considering-investment-vast-090504069.html