Alphabet’s growth-stage investment arm, CapitalG, and Nvidia are discussing a major funding round for AI infrastructure startup Vast Data. The deal could value Vast Data at up to $30 billion, according to sources familiar with the matter.
Vast Data, based in New York, develops advanced storage technology designed for large AI data centers. Its system helps efficiently move data between graphics processors, like those made by Nvidia. The company’s clients include Elon Musk’s xAI and CoreWeave.
The startup has shown strong growth, generating $200 million in annual recurring revenue (ARR) by January 2025 and projecting to reach $600 million ARR next year. Vast Data is already cash flow positive and has raised about $380 million so far, with a previous valuation of $9.1 billion in 2023.
CapitalG and Nvidia’s involvement signals confidence in Vast Data’s role in the AI supply chain. The company is seen as a potential candidate for an initial public offering (IPO) in the future, though no immediate plans have been announced.
Vast Data’s storage system combines flash devices and standard hardware with proprietary software to lower costs and improve AI model efficiency. Analysts say its technology is more mature than competitors like Weka and DDN.
Nvidia, which also owns key AI hardware products, has been expanding through acquisitions to enhance its AI infrastructure offerings.
Neither Vast Data, CapitalG, nor Nvidia commented on the talks.
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