In a move that underscores the rapidly evolving landscape of artificial intelligence and enterprise data infrastructure, Alphabet’s growth investment arm, CapitalG, and semiconductor giant Nvidia are said to be in advanced talks to jointly lead a new funding round for Vast Data, sources familiar with the matter revealed. The deal, if completed, would value the New York-based data platform at up to $30 billion, further cementing both CapitalG and Nvidia’s central roles in shaping the next decade of digital transformation.

This potential investment signals heightened confidence in Vast Data’s technology and market strategy—and highlights the voracious appetite among big tech and institutional investors for platforms capable of powering the next generation of data-heavy, AI-driven applications. The discussions are still ongoing, and terms could change, but people close to the situation indicate that the round could close within the coming months.

Vast Data: Redefining Enterprise Storage for the AI Era

Founded in 2016, Vast Data has quickly ascended to prominence by promising organizations a unified, high-performance data platform designed specifically for the balloons in data volumes and compute requirements ushered in by advances in artificial intelligence and machine learning. Vast Data’s core product, its Universal Storage architecture, addresses the bottlenecks of legacy approaches by bringing together flash storage, distributed file and object storage, and AI-native data management on a single platform.

The company touts its ability to support massive data sets—running into exabytes—with high reliability and low latency, a necessity for industries deploying large-scale AI models in areas such as autonomous vehicles, genomics, media, and financial services.

Vast Data has already amassed an impressive roster of customers, including leading Fortune 500 firms, major research institutions, and cloud-native startups. According to industry sources, annual recurring revenue surpassed $400 million as of mid-2025, marking more than 50% growth year-over-year and putting the company on a path to profitability.

Nvidia and CapitalG: Strategic Investors with Global Ambitions

CapitalG and Nvidia’s interest in Vast Data is no surprise given their growing footprints in the global AI infrastructure race. CapitalG, Alphabet’s independent growth fund, has a long track record of identifying category-defining disruptors during their exponential growth phase, with past investments in companies such as Stripe, UiPath, and CrowdStrike. Nvidia’s participation, meanwhile, aligns with its aggressive expansion beyond high-performance GPUs into the broader AI platform ecosystem—including software, data storage, and distributed computing.

Nvidia reported record revenues of $77 billion for its fiscal 2025, driven by surging demand for its AI chips and enterprise solutions. As hyperscalers and cloud providers scramble to build out data centers that can handle training and inference workloads for models such as OpenAI’s GPT-5 or Google’s Gemini Ultra, Nvidia’s strategy has shifted to include investments in adjacent tech, such as data management, networking, and distributed file systems—making a partnership with Vast Data logical and potentially mutually reinforcing.

CapitalG’s involvement would offer another layer of validation, potentially opening doors to new enterprise partnerships, channel relationships, and co-development opportunities across Alphabet’s diverse ecosystem.

Valuation Soars Amidst Hot AI Market

The reported $30 billion valuation marks a dramatic jump for Vast Data, which was valued at $9 billion during its last fundraising round in late 2024. The valuation surge reflects not only the overall excitement in the AI and data infrastructure market but also Vast Data’s execution and rapidly growing customer base.

Globally, venture capital investment in AI companies crossed $150 billion in the first half of 2025, according to PitchBook data, with a record number of mega-rounds directed toward AI infrastructure and platform providers. The move echoes wider trends, where data-related startups—a sector once viewed as niche—now command valuations on par with major software or cloud computing vendors.

For investors, the deal also exemplifies the persistent search for alternatives to overvalued public equities in the tech sector. As IPO markets remain turbulent and regulatory scrutiny over large M&A transactions increases, late-stage growth rounds in high-quality, revenue-generating private companies like Vast Data are increasingly attractive plays.

Industry Implications and the Road Ahead

If finalized, the collaboration signals a powerful new alliance at the intersection of data storage, AI processing, and cloud-scale deployments. It also amplifies the competitive pressure on legacy storage giants such as Dell EMC, NetApp, and Pure Storage, who are all racing to refresh product portfolios in the face of fast-growing startups and AI-born disruptors.

On the regulatory front, massive cross-sector investments like this come amidst heightened scrutiny from U.S. and European antitrust authorities. Regulators are increasingly examining whether big tech’s strategic investment practices limit competition or stifle innovation, especially given the critical role that platforms like Vast Data may play in digital infrastructure and AI supply chains.

Sources say that, while a public offering is still a possibility down the line, the new round would push any Vast Data IPO timeline to at least 2026, granting the company and its backers additional runway to cement product leadership and scale operations to meet the demands of the GenAI era.

Conclusion: Big Bets on the Future of AI Data

The joint interest from CapitalG and Nvidia is emblematic of the enormous bets being placed on data management as the foundation of the next technological era. As AI models balloon in size, complexity, and real-world impact, the infrastructures underpinning them—such as those built by Vast Data—will increasingly come to define not just the leaders in tech, but the future of global enterprise beyond 2025.

With this round, VCs and corporates alike are signaling that, in the arms race for AI dominance, the companies building scalable, reliable, and intelligent data platforms are poised to win the marathon—potentially shaping the very fabric of tomorrow’s digital economy.

Reuters will continue to track updates and final terms as negotiations between Vast Data, CapitalG, and Nvidia advance. Further announcements are expected in the next quarter.