Nvidia backs AI company Vast Data at $30 billion valuation

On Wednesday, Vast Data revealed it has successfully closed a $1 billion funding round, elevating its valuation to an impressive $30 billion, with Nvidia stepping in as a key investor. Established in 2016, Vast Data specializes in software infrastructure that efficiently manages extensive data, particularly for artificial intelligence applications. The company claims to facilitate projects that utilize millions of GPUs, boasting an impressive roster of clients that includes CoreWeave, Mistral, the U.S. Air Force, and Cursor. This latest funding round marks a significant increase from the $9.1 billion valuation reached in 2023, indicating the rapid growth and confidence in the AI sector. The year has already seen record investments in AI companies worldwide, with funding totals reaching around $280.5 billion, as reported by Dealroom. Notably, leading players in the industry, such as OpenAI, Anthropic, and xAI, have collectively secured over $170 billion. The Series F funding for Vast Data was spearheaded by Drive Capital and Access Industries, with additional participation from Fidelity Management and NEA, alongside Nvidia. This financing round comprised both primary and secondary capital, reflecting strong investor confidence. Chris Olsen, co-founder and partner at Drive Capital, commented on the evolving landscape, stating, "The scale and speed of AI adoption are creating a new class of infrastructure company. VAST is emerging as the clear leader in this category, with the architecture and momentum to support the world's most demanding AI environments." Vast Data also announced that it has exceeded $4 billion in cumulative bookings and concluded the previous fiscal year with over $500 million in committed annual recurring revenue. Nvidia’s increased financial involvement in private startups this year underscores its strategy to solidify its position at the forefront of the AI revolution. Amidst this trend, Nvidia has also participated in significant funding rounds for other AI labs, including OpenAI, Anthropic, and xAI, as well as companies like neocloud Nscale and the autonomous driving firm Wayve.