AI Startup Vast Data Poised for $30B Valuation as Tech Giants Invest

As of August 1st, 2025, the artificial intelligence (AI) infrastructure provider Vast Data is poised to become one of the most valuable AI startups, with a potential valuation of up to $30 billion. The New York-headquartered company is currently in talks with Alphabet's growth-stage venture arm CapitalG and Nvidia to secure a new multi-billion-dollar funding round.

This latest investment round is expected to close in the next few weeks and will further solidify Vast Data's position in the AI supply chain. The company's storage technology, designed specifically for large AI data centers, has already attracted high-profile clients such as Elon Musk's xAI and CoreWeave. Vast Data's ability to enable efficient data movement between graphics processors (GPUs) made by companies like Nvidia has made it an attractive acquisition target for industry players.

According to sources familiar with the matter, Vast Data is on track to earn $200 million in annual recurring revenue (ARR) by January 2025, with a strong backlog of orders and projections to grow ARR to $600 million next year. The company's CEO, Renen Halak, has stated that Vast Data is currently free cash flow positive, further bolstering its appeal to investors.

While no immediate initial public offering (IPO) is planned, Vast Data's recent hiring of Amy Shapero, its first chief financial officer, who previously held the same role at Shopify, could signal preparations for a future public listing. Mergers and acquisitions activity in the AI infrastructure sector has also been heating up, with Nvidia actively acquiring companies that add complementary software and hardware products to its portfolio.