Vast Data, a leader in AI-friendly data storage solutions, is reportedly aiming for a $25 billion valuation in its upcoming funding round. If successful, this would represent a significant jump from the company’s $9 billion valuation achieved during its Series E round in December 2023.
A Massive Leap in Valuation #
The 9-year-old company has seen explosive growth thanks to rising demand for AI infrastructure. According to sources familiar with the deal, the terms are not yet finalized, and the valuation could still shift. Even so, venture capital firms remain highly interested in Vast Data’s trajectory.
What Makes Vast Data Unique? #
Vast Data’s platform combines data management software with unified CPU, GPU, and hardware systems from partners like Supermicro, HPE, and Cisco. Unlike traditional tiered storage solutions, Vast eliminates tiers by focusing on flash storage, making data access faster and more efficient.
Its platform consolidates structured, semi-structured, and unstructured data in a single place, enabling:
- Faster data retrieval
- Lower costs for AI model training and inference
- Simplified enterprise storage management
Strong Customer Base #
Vast Data has already attracted major customers, including:
- Pixar
- ServiceNow
- xAI (Elon Musk’s AI company)
- AI cloud providers like CoreWeave and Lambda
These partnerships highlight Vast’s role in powering both large enterprises and next-generation AI infrastructure providers.
Financial Growth and Profitability #
- Annual Recurring Revenue (ARR): $200M at Series E (18 months ago)
- Growth Rate: 2.5x to 3x year-over-year, according to CEO Renen Hallak
- Profitability: Free cash flow positive for the past four years
This level of sustainable growth positions Vast Data as one of the strongest players in the AI storage sector.
Competitive Landscape #
Vast Data competes with major players such as:
- Pure Storage – publicly traded, valued at nearly $17B
- Weka – raised $140M in 2024 at a $1.6B valuation
- Databricks – Vast is developing database architecture competitive with its offerings
Funding History #
Before the latest round, Vast Data raised $381 million from investors including:
- Fidelity Management & Research Company
- NEA
- BOND Capital
- Drive Capital
Key Takeaway #
With AI adoption accelerating globally, Vast Data’s potential $25 billion valuation underscores its pivotal role in powering data-intensive industries. By delivering high-performance, flash-based storage solutions, the company is positioning itself as a core enabler of next-generation AI and enterprise workloads.