Vast Data, a data storage software company backed by Nvidia (NVDA), has announced the completion of a new funding round of approximately $1 billion, raising its valuation to $30 billion. This marks more than a threefold increase from its $9.1 billion valuation in 2023, reflecting continued strong capital market enthusiasm for the AI infrastructure sector.
Co-founder and CEO Renen Hallak stated that the current round includes both primary and secondary offerings, with the latter allowing employees and early investors to sell some of their shares while providing the company with greater flexibility regarding whether and when to proceed with an IPO. The round was co-led by Drive Capital and Access Industries, with participation from existing shareholders Nvidia, Fidelity Investments, and NEA.
Vast Data primarily provides software and storage devices designed to replace traditional data storage and database systems, enabling customers to train and run AI programs more efficiently. Its customers include JPMorgan Chase (JPM), xAI, and CoreWeave (CRWV). Hallak revealed that the company has secured approximately $4 billion in cumulative orders over its ten-year history, with most of that coming in the past year, and is currently profitable at the operational level.
The new funding may be used in the future for acquisitions and investments in companies within the AI ecosystem. To advance its IPO readiness, Vast Data hired former Shopify (SHOP) Chief Financial Officer Amy Shapero as CFO approximately 18 months ago. Hallak expects the company to be IPO-ready by the end of this year, after which it will decide whether to proceed with a public offering.
Analysts point out that Vast Data is attempting to expand from AI customers to a broader base of large enterprise clients, while also partnering with funds from the United Arab Emirates and Singapore to drive regional expansion. Drive Capital co-founder Chris Olsen said that Vast possesses “game-changing technology, the right timing, and a highly attractive business model,” but the challenge lies in convincing enterprises to replace existing systems that are not necessarily “broken.” By targeting AI workloads as an entry point, the sales logic becomes more compelling.
Although investors continue to debate whether AI spending has peaked, the stock of Vast Data’s backer Nvidia continued to rise in April. Nvidia expects demand for its Blackwell and Rubin AI systems to reach at least $1 trillion by 2027, underscoring the massive scale of ongoing infrastructure investment.
