In a move signaling the ever-intensifying race to build the backbone of artificial intelligence, sources indicate that Alphabet’s growth fund CapitalG and AI powerhouse Nvidia are in advanced talks to jointly invest in Vast Data, an enterprise data infrastructure company, at a staggering valuation of up to $30 billion.

This potential funding round, which if completed would make Vast Data one of the most valuable private AI infrastructure providers, highlights both investor confidence and intensifying competition among major players vying to power the next generation of generative AI technologies.

Vast Data: Powering the Data Behind AI

Founded in 2016, Vast Data has rapidly emerged as a key enabler for AI workloads by revolutionizing how unstructured data are stored and accessed at scale. The New York-based company has developed a unique data platform that leverages high-performance all-flash storage paired with advanced data management and scalability software, targeting large-scale enterprises and AI-reliant sectors like finance, healthcare, scientific research, and media.

With AI models—especially those underpinning generative applications and large language models—demanding ever greater data throughput and reliability, Vast Data’s technology promises acceleration of insights from complex, distributed data sources. Vast Data reported over 300% year-over-year revenue growth in its most recent fiscal year and counts leading organizations such as NASA, Pixar, and top financial institutions among its clients.

Nvidia and Alphabet: Strategic AI Investors

Both Nvidia and Alphabet are at the forefront of artificial intelligence research and commercialization. Nvidia, whose GPUs and AI-specific chips have become essential for AI training and inference, posted record annual revenues above $52 billion in 2024 and recently became the world’s second most valuable publicly traded company. Supporting the wider AI ecosystem is a strategic priority, bolstering Nvidia’s dominance across the value chain.

Meanwhile, CapitalG—Alphabet’s independent growth fund—has a long track record of investing in disruptive tech firms. Backing Vast Data aligns with Alphabet’s ambitions to cement Google Cloud as a dominant AI platform, especially given growing demand from both corporate and government customers for sovereign, flexible data solutions.

The deal, if finalized, would see CapitalG, Nvidia, and potentially other existing and new participants invest hundreds of millions of dollars into Vast Data, according to sources familiar with the matter. Both companies declined to comment.

AI Infrastructure: The Competitive Battleground

Interest in data infrastructure startups has soared as generative AI projects strain traditional data storage and movement architectures. According to Crunchbase, global venture funding for AI infrastructure companies surged 290% to $18.7 billion in the first half of 2025 alone.

Vast Data’s latest round comes amid a string of high-valuation fundraising efforts. In July 2025, another AI data startup, Lambda, raised $300 million at a $5 billion valuation, while CoreWeave, a cloud provider optimized for AI, secured $1.1 billion in investment at nearly $19 billion valuation. The unprecedented activity underscores the arms race between major tech incumbents and specialized infrastructure startups.

The Road Ahead: Implications for the AI Ecosystem

If closed at the mooted $30 billion valuation, Vast Data would join the ranks of the world’s most valuable private tech firms and mark a global milestone for AI-focused enterprise infrastructure companies. Industry analysts suggest this capital infusion would be directed at global expansion, further R&D, and acceleration of AI-native data solutions.

Moreover, the involvement of Nvidia and CapitalG would cement longstanding strategic ties between the most important suppliers and consumers of next-gen data infrastructure. This could ensure tighter integration with Nvidia’s accelerated computing stack, as well as support Google’s growing stable of enterprise and government cloud offerings under its AI-optimized platforms.

For investors, the transaction would highlight the shifting center of gravity in tech funding—from consumer apps towards the less-glamorous but critical backbone of the information age: data and compute infrastructure. As cloud providers, semiconductor giants, and strategic investors like CapitalG chase scarce, proven assets, the appetite for large-scale deals is unlikely to abate soon.

Industry observers are watching closely to see whether this mega-round could push other data infrastructure providers to seek similar valuations or alliances—potentially reshaping the competitive landscape for years to come.