August 2, 2025 – Alphabet’s CapitalG and Nvidia are reportedly in discussions to invest in Vast Data, an artificial intelligence (AI) infrastructure provider, in a new funding round that could value the startup at up to $30 billion. This deal highlights the growing importance of companies like Vast Data that are building the technological backbone for the AI boom.
Vast Data, which specializes in storage technology for AI data centers, has emerged as one of the most valuable AI startups. Its clients include prominent companies like Elon Musk’s xAI and CoreWeave, adding to its attractiveness in the AI supply chain. As of January 2025, the company is expected to reach $600 million in annual recurring revenue (ARR), with strong growth prospects.
The Investment and Market Outlook
The funding round, which could raise several billion dollars, is expected to close in the next few weeks. If completed, it will position Vast Data as one of the most valuable AI startups. Nvidia and CapitalG, which is the growth-stage venture arm of Alphabet, are key players in this round, which underscores the growing competition to dominate the AI infrastructure market.
Nvidia’s involvement highlights its increasing stake in data infrastructure and storage, complementary to its AI chip business. According to sources, the Exynos 2400 SoC developed by Nvidia could play a critical role in this new partnership, driving data processing across AI applications.
Vast Data’s Technology and IPO Prospects
Vast Data’s technology combines flash storage devices with specialized software designed for efficient data access and movement within large AI models. The company’s storage solutions help reduce the cost of building and running AI models, a key challenge for AI developers.
As the company expands, it is reportedly considering an initial public offering (IPO) in the near future. The addition of former Shopify CFO Amy Shapero to its team is seen as a sign that the company is preparing for a potential listing.
Vast Data’s success and its upcoming funding round come at a time when AI infrastructure providers are increasingly sought after, especially those offering scalable solutions for massive data processing and storage needs.
Vast Data’s Strong Financials
Vast Data’s ARR is projected to grow significantly, with the company forecasting $600 million in revenue for 2026. This growth is fueled by an expanding backlog of orders and high demand for AI infrastructure solutions.
The company has already raised approximately $380 million to date, and its last funding round in 2023 valued it at $9.1 billion. The $30 billion valuation in the upcoming round could reflect both Vast Data’s technological edge and the increasing reliance on AI infrastructure by companies across industries.
Nvidia and CapitalG’s Growing Influence in AI
The involvement of Nvidia and CapitalG in this funding round is indicative of their growing influence in AI infrastructure development. As AI adoption accelerates globally, these investors are positioning themselves to capitalize on the increasing demand for AI hardware and software solutions. Nvidia, known for its dominance in AI chips, is now focusing on acquiring companies that complement its existing product portfolio, such as Vast Data’s data storage solutions.
The Road Ahead for Vast Data
With its strong growth trajectory and potential for an IPO, Vast Data is poised to become a key player in the AI infrastructure market. If the current funding round is successful, the company’s valuation could continue to rise, cementing its place as a leader in the AI storage and data center space.
As Nvidia and CapitalG continue to back AI innovations, the future looks bright for Vast Data as it aims to meet the ever-growing demand for advanced AI infrastructure solutions across industries.https://www.youtube.com/watch?v=zi5hl322kbI
