Key Points
- AI infrastructure startup Vast Data may raise billions in a new funding round.
- The deal could value the company as high as $30 billion, a massive leap from its previous $9.1 billion valuation.
- Alphabet’s CapitalG and existing investor Nvidia are in talks to participate.
- The company is already profitable and projects its annual recurring revenue to grow to $600 million next year.
Vast Data, a company that builds key infrastructure for artificial intelligence, is in talks for a massive new funding round. The deal could value the startup as high as $30 billion, with Google’s parent company, Alphabet, and chip giant Nvidia looking to invest.
The startup is raising several billion dollars, making it one of the most valuable players in the AI space. Vast Data, based in New York, creates specialized storage technology for AI data centers. This tech helps move data efficiently to the powerful graphics processors (GPUs) made by Nvidia, making them a crucial part of the AI supply chain. Their client list already includes big names like Elon Musk’s xAI and CoreWeave.
This potential $30 billion valuation is a huge jump from its last funding round in 2023, which valued the company at $9.1 billion. Vast Data is already profitable, a rarity for a startup. It reportedly earned $200 million in recurring revenue by January and expects that number to triple to $600 million next year.
While the company has not announced an initial public offering (IPO), investors see it as a strong candidate. Last year, Vast Data hired a new chief financial officer who previously worked at the publicly traded e-commerce company Shopify, a move often seen as a step toward going public.
With mergers and acquisitions heating up in the AI sector, and Nvidia actively buying companies that support its main business, Vast Data is in a prime position for major growth.
