VAST Data in Talks for $30 Billion Valuation Funding with CapitalG and Nvidia

VAST Data, a New York-based artificial intelligence infrastructure startup, is in advanced discussions with Alphabet's venture arm CapitalG and semiconductor giant Nvidia to secure a major funding round that could value the company at up to $30 billion. The current valuation of the company stands at $9.1 billion, based on its 2023 funding round, and the new investment could significantly elevate its market standing [1]. The proposed funding is expected to involve a mix of tech giants, private equity, and venture capital investors, positioning VAST Data as one of the most valuable private AI infrastructure providers [2].

The investment from CapitalG marks Alphabet’s strategic entrance into the AI infrastructure space, while Nvidia’s participation aligns with its ongoing efforts to strengthen its presence in the AI data stack. The company, which provides specialized storage solutions for AI data centers, has already attracted notable clients such as xAI and CoreWeave. Its technology enables high-speed data movement between GPUs, a critical capability as the demand for scalable AI training environments continues to rise [3].

VAST Data has previously raised approximately $380 million in funding, with its latest round in 2023 valued at $9.1 billion. The company has demonstrated strong financial performance, reaching $200 million in annual recurring revenue (ARR) in January 2025 and projecting to triple that to $600 million in the next year [4]. Notably, VAST is free cash flow positive, a rare feat in the AI startup landscape where capital consumption is common during rapid growth phases [5].

The company’s DASE architecture integrates storage, compute, and database layers into a single system, enabling real-time analytics and high-performance AI operations. This approach is particularly valuable for enterprises seeking to scale AI workloads without compromising efficiency or performance. Analysts have highlighted that VAST Data’s solutions effectively address a key bottleneck in the AI ecosystem—managing and processing vast data sets at high speed [6].

The proposed funding is not only expected to accelerate VAST Data’s growth but also to reinforce its role in enterprise AI environments, where data processing and storage are critical challenges. Strategic partnerships with major players like Google Cloud and Nvidia are seen as key drivers of the company’s value proposition and market expansion [7].

While VAST Data has not publicly indicated plans for an IPO, internal discussions suggest it is laying the groundwork for potential public listing. The appointment of Amy Shapero, former CFO of Shopify, has fueled speculation about future fundraising plans and possible public market ambitions [8].

The $30 billion valuation target, though ambitious, is in line with broader industry trends. As AI adoption accelerates, so does the demand for efficient, scalable infrastructure. VAST Data’s focus on enterprise-grade performance and cost efficiency positions it as a strong contender in the rapidly growing AI infrastructure market [9]. If the funding round proceeds, it would mark a major milestone for the company and underscore the increasing importance of infrastructure in the AI-driven digital economy [10].

Sources:

[1] CapitalG, Nvidia in talks to fund Vast Data at up to $30 billion valuation, sources say, (https://www.reuters.com/business/alphabets-capitalg-nvidia-talks-fund-vast-data-up-30-billion-valuation-sources-2025-08-01/)

[2] Vast Data Eyes $30 Billion Valuation in Major AI Storage Funding, (https://www.ainvest.com/news/vast-data-eyes-30-billion-valuation-major-ai-storage-funding-2508/)

[3] Alphabet's CapitalG, Nvidia mull investment in Vast Data's new funding round, (https://seekingalpha.com/news/4476457-nvidia-alphabets-capitalg-mull-investment-in-vast-datas-new-funding-round)

[4] Vast Data in talks with Alphabet's CapitalG, Nvidia to fund round at up to $30B valuation, (https://startupnews.fyi/2025/08/01/vast-data-in-talks-with-alphabets-capitalg-nvidia-to-fund-round-at-up-to-30b-valuation/)

[5] Sources: CapitalG and Nvidia are in talks to invest in Vast Data, which could value the AI infrastructure provider at up to $30B, up from $9.1B in December 2023, (https://www.techmeme.com/250801/p10)

[6] VAST Data's $30B Valuation and AI Infrastructure Dominance, (https://www.ainvest.com/news/vast-data-30b-valuation-ai-infrastructure-dominance-private-ai-enabler-outpaces-public-tech-giants-growth-potential-roi-2508/)

[7] Vast Data eyes $30B valuation in talks to raise billions from..., (https://www.calcalistech.com/ctechnews/article/adcqe6qo1)

[8] Alphabet's CapitalG, Nvidia in talks to fund Vast Data..., (https://www.tipranks.com/news/the-fly/alphabets-capitalg-nvidia-in-talks-to-fund-vast-data-reuters-reports-thefly)

[10] Vast Data in talks with Alphabet's CapitalG, Nvidia to fund round at up to $30B valuation, (https://finance.yahoo.com/topic/tech/)