AI storage platform Vast Data aimed for $25B valuation in new round, sources say

Vast Data, a prominent player in AI-optimized data storage solutions, is preparing to secure a new funding round with an ambitious target valuation of approximately $25 billion. This marks a significant leap from its previous valuation of $9 billion achieved during its Series E funding in December 2023, as reported by insiders familiar with the negotiations. As the deal is still in progress, specifics regarding the valuation and terms are subject to change. Despite the high valuation target, industry observers note Vast Data's remarkable growth trajectory has captured the attention of numerous venture capitalists. Vast Data specializes in data management software that integrates CPU, GPU, and data hardware from major vendors such as Supermicro, HPE, and Cisco. Unlike traditional data storage solutions that utilize tiered systems, Vast Data's approach aims to streamline storage, particularly focusing on flash storage technology. The company has found a lucrative niche by catering to the demands of AI, allowing clients to store structured, semi-structured, and unstructured data collectively. This integration accelerates data retrieval, ultimately lowering the costs associated with model training and inference. Its impressive client roster includes industry giants like Pixar, ServiceNow, and xAI, alongside emerging AI cloud providers such as CoreWeave and Lambda. According to TechCrunch, Vast Data reported an annual recurring revenue (ARR) of $200 million during its last funding round about 18 months ago. CEO Renen Hallak noted in a podcast last May that the company has been experiencing remarkable growth, with a year-over-year increase of 2.5 to 3 times. Additionally, Vast has maintained positive cash flow for four consecutive years. In the competitive landscape of data storage, Vast Data faces off against established companies such as Pure Storage, which has a market cap nearing $17 billion, and Weka, which raised $140 million last year at a valuation of $1.6 billion. Furthermore, Vast is actively developing a database architecture aimed at competing with offerings from Databricks. To date, the company has raised a total of $381 million from notable investors, including Fidelity Management & Research Company, NEA, BOND Capital, and Drive Capital.