Vast Data seeks $25 billion valuation in new funding round
Vast Data, a fast-growing innovator in AI-optimized data storage, is seeking to raise a new funding round at a sharply higher valuation—targeting as much as $25 billion. This marks a significant leap from its $9 billion Series E valuation secured in December 2023.
Though the deal is not yet finalized and the terms could shift, the potential valuation underscores the investor enthusiasm surrounding Vast’s position in the rapidly evolving AI infrastructure market. Multiple venture capital firms are said to be closely monitoring the company’s next move, drawn by its strong growth metrics and relevance to AI workloads.
A New Era of Storage for AI
Founded in 2016, Vast Data has reimagined traditional data storage architecture. Instead of the common tiered storage model—where data is allocated based on frequency of use and cost—Vast provides a unified storage layer, particularly optimized for high-performance flash memory. The company’s platform integrates seamlessly with computing infrastructure from vendors like Supermicro, HPE, and Cisco, and is designed to accelerate AI development by enabling faster, more efficient access to massive data sets.
The platform’s ability to handle structured, semi-structured, and unstructured data in one place has proven to be a key differentiator in the AI era. This consolidation not only speeds up data retrieval but also reduces the cost of training and running AI models—benefits that have gained the attention of major AI developers and enterprises alike.
Trusted by Industry Leaders
Vast’s client roster includes high-profile names such as Pixar, ServiceNow, Elon Musk's xAI, and leading AI cloud providers like CoreWeave and Lambda. These organizations rely on Vast’s technology to provide powerful, scalable storage solutions to support their AI-intensive workloads.
Vast’s rise is closely tied to the AI boom, which has driven demand for infrastructure that can keep pace with the data-hungry nature of large language models and other advanced machine learning systems. By addressing a key bottleneck in AI development—data access speed and cost—Vast has positioned itself as a critical enabler in the ecosystem.
Financial Momentum and Competitive Landscape
When Vast closed its Series E round in late 2023, the company was generating $200 million in annual recurring revenue (ARR). According to CEO and co-founder Renen Hallak, Vast has maintained a growth rate of 2.5x to 3x year-over-year and has been free cash flow positive for the past four years—an impressive feat in an industry often marked by heavy upfront investment.
The company competes with established players such as Pure Storage, which commands a market cap of nearly $17 billion, and Weka, a rising star in the sector valued at $1.6 billion after its latest funding round. In addition to competing on storage, Vast is reportedly building a database architecture that could challenge platforms like Databricks, indicating ambitions beyond infrastructure into the broader data analytics and AI toolchain space.
Backed by Leading Investors
Vast has raised $381 million to date from prominent investors, including Fidelity Management & Research Company, NEA, BOND Capital, and Drive Capital. If the upcoming round closes at the rumored $25 billion valuation, it would signal one of the most dramatic valuation jumps in recent memory for a private infrastructure software company—and further cement Vast’s role as a pillar of the AI age.
As the company navigates its next chapter, the market will be watching closely to see whether Vast can live up to its name—and its growing valuation.
