CapitalG and Nvidia are in talks about investing in Vast Data, potentially leading to a valuation of $30 billion

CapitalG, Alphabet’s growth-stage venture capital arm, and Nvidia are in talks to invest in artificial intelligence infrastructure provider Vast Data in a new funding round that could value the startup at as much as $30 billion, two sources reported.

The startup is raising billions of dollars from tech giants, private equity and venture capital investors, which could make it one of the most valuable AI startups as the companies building the foundation of the AI boom become more relevant.

CapitalG and Nvidia, its current investor, are in talks to participate in the round, which could close in the coming weeks.

Vast Data, a company located in New York, creates storage technology tailored for large AI data centers, facilitating efficient data transfer between graphics processors (GPUs) from manufacturers like Nvidia.

According to bankers and analysts, its clientele includes firms like xAI and CoreWeave (owned by Elon Musk), and due to its significant role in the AI supply chain, it is a desirable target for acquisition.

Vast Data’s fundraising efforts were previously reported by TechCrunch, but the valuation of up to $30 billion and the planned involvement of CapitalG and Nvidia had not been mentioned before.

Vast Data CEO Renen Halak said the company is free cash flow positive. The company had $200 million in annual recurring revenue (ARR) by January 2025, with a strong backlog and projections for ARR growth to $600 million next year.

The company raised approximately $380 million to date, and its latest round of funding, in 2023, valued it at $9.1 billion.