Vast Data is reportedly raising several billion dollars at up to a $30 B valuation, led by Nvidia and CapitalG. The round would shatter Israeli records, validate data-layer startups, and intensify the scramble for AI infrastructure dominance. Profitability, long contracts, and deep tech set Vast apart.
The AI boom has moved from flashy chatbots to the unseen plumbing that powers them. Nothing illustrates this shift better than Vast Data’s imminent multibillion-dollar round reportedly valuing the firm at $30 B.
By targeting the storage bottleneck that throttles GPU clusters, Vast sits at the nexus of data, compute, and AI scalability. Its pending deal offers a lens into where capital, competition, and platform leverage are heading.
This opinion unpacks the news, contextualizes its industry impact, and explores why data-layer control may define the next decade of enterprise technology.
Reuters reports that Vast Data will raise several billion dollars from Nvidia and Alphabet’s CapitalG, eclipsing Wiz’s $12 B valuation milestone and setting a new Israeli record.
Founded in 2016, Vast passed $200 M in ARR, is profitable, and retains customers for 5-7 years. Clients range from the U.S. Air Force to Pixar and Musk’s xAI.
Vast’s software-defined flash architecture provides real-time access to unstructured data, accelerating AI workloads and integrating tightly with partners like CoreWeave.
The deal confirms that venture dollars are rotating away from application-layer bets toward picks-and-shovels that remove training and inference bottlenecks.
VCs will now benchmark infrastructure startups against Vast’s triple threat: deep tech moat, capital efficiency, and long-term contracts that smooth revenue volatility.
By doubling down on Vast, Nvidia is protecting its GPU franchise. Faster storage unlocks higher GPU utilization, boosting hardware ROI and entrenching its platform.
Competitors like AMD or Intel must respond with similar data-layer alliances or risk ceding the full-stack narrative to Nvidia.
Legacy storage vendors from Dell to NetApp now face a valuation gap that mirrors their tech gap. Their ability to pivot to AI-optimized architectures will define their relevance.
Galaxy’s mission is to streamline how engineers access and operationalize data. Vast’s news highlights why that mission matters: AI value is unlocked only when data flows seamlessly from storage to query.
As enterprises modernize storage stacks with Vast-like solutions, they will demand equally modern query tooling. Galaxy’s developer-first SQL workspace complements high-performance storage by turning raw speed into actionable insight.
Both companies exemplify a shift toward opinionated, infrastructure-centric products that favor accuracy, governance, and collaboration over superficial UX gloss.
- AI infrastructure, not front-end apps, now commands premium valuations.
- Nvidia is cementing a vertically integrated moat spanning silicon, networking, and data storage.
- Profitability and long contracts are back in vogue, resetting investor expectations for discipline.
- The data layer is strategic: whoever controls data access shapes AI economics.
- Tools like Galaxy will thrive as organizations seek end-to-end data agility atop next-gen storage.
If Vast reaches $600 M ARR next year, IPO chatter will intensify, offering public markets a pure-play AI infrastructure asset.
Expect M&A among legacy vendors hunting for comparable tech or talent. Flash-optimized file systems and data orchestration startups will draw renewed interest.
For software buyers, budgeting will shift toward storage and data governance, potentially squeezing spend on non-essential SaaS dashboards.
Vast Data’s forthcoming mega-round crystallizes a core truth: in the AI era, data architecture is destiny. By solving storage throughput at scale, Vast enables every downstream model, query, and insight.
Nvidia’s participation amplifies the signal and raises the competitive bar. Vendors and enterprises must now treat the data path as a first-order strategic concern.
From GPUs to SQL editors like Galaxy, the winners will be those that make data faster, safer, and easier to use. The land-grab for AI infrastructure has only begun.
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