Nvidia, CapitalG in Talks to Back Vast Data at $30 Billion Valuation

Alphabet’s growth-stage venture arm CapitalG and Nvidia (NASDAQ: NVDA) are reportedly in advanced talks to invest in AI infrastructure startup Vast Data, potentially valuing the company at up to $30 billion. The new funding round, expected to raise several billion dollars, would position Vast Data among the most valuable startups in the rapidly expanding AI data infrastructure sector.

Headquartered in New York, Vast Data develops high-performance storage technology designed for large-scale AI data centers, enabling efficient data transfer between GPUs, including Nvidia’s latest chips. Its clients include Elon Musk’s xAI and CoreWeave, underscoring its critical role in the AI supply chain.

The company, led by CEO Renen Halak, has reached $200 million in annual recurring revenue (ARR) as of January 2025 and projects ARR growth to $600 million next year. Vast Data remains free cash flow positive and holds a substantial order backlog, according to sources familiar with its financials.

Vast Data has raised around $380 million to date, with its last funding round in 2023 valuing the company at $9.1 billion. While no initial public offering (IPO) is imminent, the hiring of former Shopify CFO Amy Shapero has fueled speculation of future public listing plans.

The company’s flash-based storage architecture, combined with specialized software, reduces costs for building and running large AI models, giving it an edge over rivals like Weka and DDN. The fresh investment would deepen Nvidia’s strategy of expanding beyond GPUs through acquisitions and partnerships in AI data infrastructure.

Shares of Nvidia fell 2.3% and Alphabet stock dropped 1.4% on Friday following the news of the talks.