Nvidia and Alphabet’s growth-stage investment arm CapitalG are in advanced discussions to lead a multibillion-dollar funding round in artificial intelligence infrastructure provider Vast Data that could value the New York-based startup at up to $30 billion, according to two sources familiar with the matter, Reuters reports.
The potential investment would catapult Vast Data into the upper echelons of valuable AI companies, underscoring soaring demand for infrastructure powering the generative AI boom. The funding round, expected to close in coming weeks, involves multiple tech investors and private equity firms, the sources said.
Vast Data specializes in storage systems optimized for AI data centers, with technology that accelerates data movement between GPUs like those made by Nvidia. Its client roster includes Elon Musk’s xAI and cloud provider CoreWeave, positioning it as a critical player in the AI supply chain.
While Nvidia declined to comment and Vast Data didn’t respond to inquiries, TechCrunch first reported the fundraising effort. The $30 billion valuation and participation talks with CapitalG and Nvidia haven’t been previously disclosed.
The startup has seen rapid growth, reaching $200 million in annual recurring revenue (ARR) by January 2025 with projections to triple that figure next year, according to a financial source. After raising $380 million to date, including a 2023 round valuing it at $9.1 billion, Vast Data has hinted at future IPO plans – a path supported by last year’s hiring of ex-Shopify CFO Amy Shapero.
Nvidia’s potential investment aligns with its strategy of expanding beyond chips through acquisitions like Mellanox and Run:ai. Vast Data’s flash storage architecture, which combines off-the-shelf hardware with proprietary software, claims to significantly reduce AI model development costs.
The news comes as Nvidia shares dipped 2.3% and Alphabet fell 1.4% in Friday trading, though both remain key players fueling the AI infrastructure boom. Industry analysts note Vast Data’s technology maturity gives it an edge over competitors like Weka and DDN in the race to support ever-larger AI systems.
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