Vast Data eyes $30B valuation in talks to raise billions from CapitalG and Nvidia

Alphabet's growth-stage venture arm CapitalG and Nvidia are in talks to invest in Israeli artificial intelligence infrastructure provider Vast Data in a new funding round that could value the startup as high as $30 billion, according to Reuters.

The company is reportedly raising several billion dollars from tech giants, private equity firms, and venture capital investors, potentially making it one of the world’s most valuable AI startups, as the companies building the backbone of the AI boom attract sharper investor focus. CapitalG and existing backer Nvidia are in discussions to participate in the round, which could close within weeks, according to two sources who requested anonymity to discuss private matters.

New York-headquartered Vast Data develops storage technology specifically designed for large-scale AI data centers, enabling efficient data movement between graphics processors (GPUs) made by companies like Nvidia. Its clients include Elon Musk’s xAI and cloud computing provider CoreWeave. Given its growing role in the AI supply chain, Vast has emerged as an attractive acquisition target, according to analysts and bankers.

Nvidia declined to comment, and Vast Data and CapitalG did not respond to requests for comment.

Vast Data CEO Renen Hallak has stated the company is free cash flow positive. As of January 2025, it had reached $200 million in annual recurring revenue (ARR), with a strong backlog of orders and a projection to grow ARR to $600 million in 2026, according to a source familiar with the company’s financials.

Vast has raised approximately $380 million to date, and its most recent funding round in 2023 valued it at $9.1 billion. The company has said it would consider an initial public offering (IPO) at the right time. While no IPO is imminent, another source said investors and bankers view the company as a strong IPO candidate.

Vast Data hired its first chief financial officer last year, Amy Shapero, previously CFO of publicly listed e-commerce firm Shopify, a move widely interpreted as a step toward going public.

Founded in 2016 by Israeli entrepreneurs Renen Hallak and Shachar Fienblit, Vast Data has undergone rapid evolution. Originally launched as a next-generation storage vendor, it has since expanded into a full-stack AI data platform unifying storage, databases, and compute orchestration, an architecture designed for GPU-accelerated and large-scale AI workloads.

M&A activity has also intensified in the AI infrastructure space. Nvidia has aggressively expanded its portfolio beyond GPUs, acquiring complementary hardware and software providers. In 2020, it acquired Israeli networking chipmaker Mellanox, which has helped Nvidia build tightly integrated systems around its latest Blackwell processors. More recently, it acquired Run:ai, an Israeli startup whose software helps optimize data center AI workloads.

Vast Data’s storage architecture is based on a combination of flash storage devices and other off-the-shelf hardware, powered by proprietary software that streamlines data access and movement. The company says its system reduces the cost of building and running large-scale AI models.

Its customer base includes both industry leaders and government agencies. The U.S. Air Force, the Department of Energy, Booking Holdings, Verizon, Zoom, Pixar, and Boston Children’s Hospital all rely on Vast Data’s systems to manage immense data workloads that power AI-driven operations.