Nvidia, Alphabet’s CapitalG mull investment in Vast Data’s new funding round – report

Alphabet’s (NASDAQ:GOOGL) (NASDAQ:GOOG) growth-stage venture unit CapitalG and Nvidia (NASDAQ:NVDA) are in discussions to invest in AI infrastructure provider Vast Data in a new funding round, which could value the company up to $30B, Reuters reported.

New York-based Vast Data is raising several billion dollars from tech giants, private equity and venture capital investors, that could make it one of the most valuable AI startups, the report added, citing people with knowledge of the matter.

Google, Nvidia and Vast Data did not immediately respond to a request for comment from Seeking Alpha.

CapitalG and existing investor Nvidia are in talks to take part in the round, which could close in the next few weeks, the report noted.

As per its website, VAST Data is building an AI Operating System, a global data platform that empowers intelligent agents to store, think, communicate, and act.

Earlier TechCrunch reported Vast Data’s fundraising efforts, but the details about valuation and the potential involvement of CapitalG and Nvidia were not reported previously.

Vast Data CEO Renen Halak has said the company is free cash flow positive. The startup recorded $200M in annual recurring revenue, or ARR, by January 2025, with a strong backlog of orders and forecast to increase ARR to $600M next year, the report added, citing separate sources with knowledge of the financials.

Vast Data has raised about $380M to date, and its last funding round in 2023 valued it at $9.1B, according to the report.

The company has said it would think of an IPO at the right time. While no listing is imminent, investors and bankers view the data infrastructure startup as a likely IPO candidate, the report added.

Last year, Vast Data appointed Amy Shapero, its first CFO, who was previously in the same role at e-commerce company Shopify, in a move that may signal preparations for an IPO, the report noted.