Vast Data Eyes $25B Valuation in New Round
AI Storage Startup Targets Funding Leap
Vast Data, the innovative data storage platform optimized for AI workloads, is preparing for a potential valuation milestone. Sources indicate the company aims to secure funding at a staggering $25 billion valuation, marking a dramatic increase from its $9 billion valuation in December 2023.
The Potential Game-Changing Deal
While negotiations remain ongoing and terms could shift, industry insiders confirm the $25 billion target was actively pursued earlier this year. This would represent nearly a tripling of Vast Data’s worth in just months. Multiple venture capital firms are reportedly monitoring the startup’s progress closely.
The company declined to comment on the ongoing funding discussions when contacted by reporters.
Vast Data’s AI-Optimized Technology
Vast differentiates itself through its unified data platform that combines:
- Advanced data management software
- Integrated hardware systems from partners like Supermicro and HPE
- Elimination of traditional storage tiers through flash-based solutions
AI Boom Fuels Growth
The company’s ability to store structured, semi-structured, and unstructured data in a single system has become increasingly valuable in the AI era. This architecture:
- Dramatically speeds up data retrieval
- Reduces costs for AI model training
- Streamlines inference processes
Vast boasts an impressive client roster including Pixar, ServiceNow, and Elon Musk’s xAI, along with AI cloud providers like CoreWeave and Lambda.
Financial Performance and Growth
At its Series E funding 18 months ago, Vast reported:
- $200 million in annual recurring revenue (ARR)
- 2.5x-3x year-over-year growth
- Four consecutive years of positive free cash flow
Competitive Landscape
Vast operates in a competitive space against:
- Pure Storage (market cap: $17B)
- Weka ($1.6B valuation)
- Database offerings from Databricks
To date, the company has raised $381 million from prominent investors including Fidelity, NEA, and BOND Capital.