Vast Data, the prominent AI-focused data storage firm, is reportedly aiming for a valuation around $25 billion as it prepares for its next funding round, marking a substantial increase from its previous valuation. Just 18 months ago, during its Series E investment round in December 2023, Vast Data secured a valuation of $9 billion.
Insiders close to the matter suggest that despite significant investor interest and robust growth, negotiations remain ongoing, and the targeted valuation might adjust as discussions progress. The company has not provided official comments regarding this development.
Founded nine years ago, Vast Data has positioned itself as a key player in AI-friendly data management. Unlike traditional storage solutions that depend on multiple data tiers— from cost-effective archival options to high-performance storage— the company aims to simplify and unify data architecture through flash-storage solutions. Its platform combines data management software with hardware components featuring CPUs, GPUs, and storage modules supplied by vendors such as Supermicro, HPE, and Cisco.
Significant growth in artificial intelligence applications has significantly boosted Vast Data’s performance by driving demand for rapid, consolidated data access suitable for AI training and inference tasks. The company’s technology enables faster data retrieval and claims substantial cost reductions for enterprises engaged in AI projects.
Vast Data’s clientele includes leading industry players such as Pixar, ServiceNow, and Xai, as well as innovative cloud providers like Coreweave and Lambda, which leverage Vast’s systems to provide advanced storage solutions to their customers. At the time of its last funding round, Vast had an annual recurring revenue (ARR) of roughly $200 million. Recently, CEO Renen Hallak reported the company’s ongoing growth at between 2.5x and 3x year-over-year. He also revealed that Vast Data has remained free cash flow positive for the past four years.
In the storage technology landscape, Vast Data competes against established rivals such as publicly traded Pure Storage, currently with a market capitalization of approximately $17 billion, and Weka, another player which raised $140 million at a valuation of $1.6 billion last year. Moreover, Vast Data is making strategic moves into the database industry, developing a platform architecture intended to challenge competitors like Databricks.
To date, Vast Data has raised about $381 million from investors such as Fidelity Management & Research Company, NEA, BOND Capital, and Drive Capital.
