Vast Data Nears $30B Funding from Alphabet, Nvidia

Alphabet's venture capital arm CapitalG and chipmaker Nvidia are in advanced talks to invest several billion dollars in AI infrastructure startup Vast Data, potentially valuing the company at around $30 billion. Vast Data specializes in storage solutions optimized for large-scale AI data centers, improving data transfer between GPUs and serving prominent clients like Elon Musk’s xAI and cloud provider CoreWeave. The company, which was last valued at $9.1 billion in 2023, is free cash flow positive and expected to reach $200 million in annual recurring revenue by early 2025, with projections to triple this figure by 2026. Vast Data's innovative approach, combining flash storage with standard hardware and proprietary software, has positioned it as a critical player in the AI data supply chain, making it an attractive acquisition and IPO candidate. The funding round, supported by both CapitalG and Nvidia, would reinforce Vast Data’s strategic role amid growing investor focus on AI infrastructure as the backbone of the AI boom. Analysts and insiders see the company as poised for a potential public offering in the near future, reflecting its rapid growth and strong financial outlook.