Alphabet's CapitalG and Nvidia in negotiations for Vast Data investment, potentially valuing the company at $30 billion, insiders reveal.
In the rapidly growing AI infrastructure sector, Alphabet's growth-stage venture arm CapitalG and Nvidia are in talks to invest in Vast Data, an artificial intelligence infrastructure provider. The funding round, which could value the startup at up to $30 billion, marks a significant increase from its previous valuation of $9.1 billion in 2023.
Vast Data, known for its innovative storage technology designed for large AI data centers, has been free cash flow positive since its inception. The company has raised approximately $380 million in total funding, with its clientele including Elon Musk's xAI and CoreWeave.
The latest information indicates that the startup is raising several billion dollars from tech giants, private equity, and venture capital investors. As of January 2025, Vast Data had reached around $200 million in annual recurring revenue (ARR) and projects this to increase to $600 million ARR in the next year.
The value of Vast Data in the AI supply chain makes it an attractive acquisition target, according to bankers and analysts. The company's technology is reportedly capable of reducing the cost of building and running large AI models.
Nvidia, which has been acquiring companies with complementary software and hardware products, bought networking chip and cable maker Mellanox in 2020 to help build integrated systems featuring its latest Blackwell chips. Similarly, Vast Data's storage architecture is based on a system of flash storage devices and off-the-shelf hardware, combined with its specialized software for data access and movement.
Regarding IPO plans, while no official announcements have been made, the substantial valuation increase and strong revenue growth suggest that Vast Data is positioning itself for significant future growth that might lead to an IPO in the medium term. However, no specific timeline or plans for an initial public offering have been confirmed as of August 2025.
TechCrunch earlier reported Vast Data's fundraising efforts, but the valuation of up to $30 billion and the expected involvement of CapitalG and Nvidia have not been reported previously. As Vast Data continues to grow and innovate in the AI infrastructure sector, its potential IPO could be a significant event in the industry.
| Aspect | Details | |------------------------|--------------------------------------| | Funding round | In talks to raise billions led by CapitalG and Nvidia | | Target valuation | Up to $30 billion (from $9.1 billion in 2023) | | Total funding to date | About $380 million | | Financials | $200 million ARR as of Jan 2025; projected $600 million ARR next year; free cash flow positive | | IPO plans | No confirmed or public announcements yet | | Clients | Elon Musk's xAI and CoreWeave | | Nvidia Acquisitions | Mellanox and Run:ai | | Vast Data's Technology | Reduces cost of building and running large AI models | | AI Supply Chain Value | Makes Vast Data an attractive acquisition target |
- The funding round, led by CapitalG and Nvidia, indicates that Vast Data is attracting significant investment from technology giants, venture capital firms, and private equity, potentially valuing the startup at up to $30 billion.
- Vast Data's innovative storage technology, designed for large AI data centers, has been proven profitable, generating free cash flow since its inception, and its potential IPO might be a significant event in the technological and AI infrastructure industry.
