CapitalG and Nvidia to Invest in Vast Data
Alphabet's growth-stage venture arm CapitalG and Nvidia are in talks to invest in artificial intelligence infrastructure provider Vast Data in a new funding round that could value the startup as high as $30 billion.
The startup is securing billions of dollars from major tech companies, private equity, and venture capital investors, which might position it as one of the most valuable AI startups.
CapitalG and current investor Nvidia are negotiating to join the round, which may conclude in the upcoming weeks. Vast Data, based in New York, creates storage technology tailor-made for large AI data centers, facilitating efficient data transfer between graphics processors (GPUs) from companies such as Nvidia. Its customers comprise firms like Elon Musk's xAI and CoreWeave, and its worth in the AI supply chain renders it an appealing acquisition candidate.
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Vast Data's CEO Renen Halak states, “The company generates positive free cash flow. By January 2025, the company had achieved $200 million in annual recurring revenue (ARR), bolstered by a robust order backlog and forecasts indicating growth in ARR to $600 million the following year, as per another source knowledgeable about its finances. The company has secured about $380 million so far, and its latest funding round in 2023 appraised it at $9.1 billion.”
Vast Data announced it would evaluate an initial public offering when the timing is appropriate. Although a listing is not forthcoming, as per another source knowledgeable about the situation, investors and bankers consider the data infrastructure company a probable IPO contender.
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Last year, Vast Data appointed Amy Shapero as its inaugural chief financial officer; she previously held the same position at the publicly traded e-commerce giant Shopify, indicating potential IPO preparations.