CapitalG and Nvidia have entered talks to back AI infrastructure company VAST Data. The prospective investments from the Alphabet subsidiary, CapitalG, and Nvidia could raise VAST Data’s valuation to $30 billion.
Alphabet’s venture arm, CapitalG, and the semiconductor giant Nvidia are in advanced discussions to invest in VAST Data, a rapidly growing artificial intelligence infrastructure startup. According to two sources with direct knowledge of the matter, the funding round could value VAST Data at up to $30B, making it one of the highest-valued AI startups globally.
VAST Data is on track for a $30B valuation
The New York-based company is reportedly raising about $5B from a mix of tech giants, private equity firms, and venture capital investors. While the final structure of the deal is still being negotiated, the round is expected to close within the next few weeks.
Alphabet’s CapitalG’s interest marks the company’s entrance into AI infrastructure. Nvidia, on the other hand, would be consolidating its ties within the AI data stack as it is already a backer of VAST Data.
VAST Data develops specialized storage solutions for AI data centers, allowing for high-speed data movement between GPUs (graphics processing units), primarily those manufactured by Nvidia. This capability is increasingly crucial as the demand for efficient, scalable AI training environments continues to rise.
The startup’s technology has attracted key clients such as Elon Musk’s xAI and CoreWeave.
Is VAST gearing up for an IPO?
According to a separate source cited by Reuters, VAST Data reached $200M in annual recurring revenue (ARR) in January 2025. With a healthy order backlog, the company is projecting to triple that figure to $600M in ARR over the next year.
VAST Data’s CEO, Renen Halak, has said that the company is free cash flow positive, which is rare among AI startups currently, as they have to burn through capital to sustain their rapid growth. Anyhow, the company is drawing speculation of a future public offering.
Although it has not hinted at an imminent IPO, insiders have said that VAST Data is laying the groundwork. In 2023, the company appointed Amy Shapero as its first Chief Financial Officer. Shapero served as the CFO at the e-commerce giant Shopify, and her experience in scaling a company through a public listing is fanning the flames of Vast Data’s future fundraising plans.
VAST Data has raised approximately $380M to date. Its most recent funding round in 2023 valued it at $9.1B. This surge in valuation is due to the increased interest in infrastructure providers such as chipmakers, cloud computing platforms, and storage specialists.
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