Alphabet’s growth equity investment arm CapitalG and AI chipmaker Nvidia are in advanced discussions to back Vast Data, an AI-focused data infrastructure company, in a funding round that could value the business at up to $30bn, according to a report by Reuters citing two sources familiar with the matter.
The New York-based company is said to be raising several billion dollars from a mix of strategic investors, private equity firms, and late-stage venture backers in what could become one of the largest private financings in the AI infrastructure space to date.
CapitalG and existing investor Nvidia are expected to participate in the upcoming round, which may close in the coming weeks, the sources added.
Vast Data provides data storage and management solutions tailored for AI workloads, enabling high-throughput data movement across GPU-based computing systems, including Nvidia’s. Its customer base includes notable AI players such as xAI and CoreWeave.
With demand accelerating for scalable AI infrastructure, the company is viewed by bankers and analysts as a strategic asset and a potential acquisition or IPO candidate. Vast Data recently appointed former Shopify CFO Amy Shapero, a move seen by some as laying the groundwork for a future listing.
The company claims to be free cash flow positive, generating $200m in annual recurring revenue (ARR) as of January 2025, with expectations to scale to $600m ARR in 2026, according to a separate source close to the firm’s financials.
To date, Vast Data has raised approximately $380m, with its last round in 2023 valuing the business at $9.1bn.
Vast’s architecture leverages flash storage combined with proprietary software to deliver cost-efficient, high-performance data solutions for AI model training and inference. Analysts view its technology as more advanced than competing offerings from peers such as Weka and DDN.
TechCrunch previously reported on Vast’s fundraising process, though details regarding the potential $30bn valuation and CapitalG’s involvement have not been disclosed until now.
Shares in Nvidia and Alphabet declined 2.3% and 1.4%, respectively, in Friday’s trading session.
