Vast Data Eyes $25B Valuation Amid Soaring AI Storage Demand

AI storage startup Vast Data is reportedly seeking a new funding round that could boost its valuation to $25 billion. A major leap from its $9 billion Series E valuation in December 2023, according to sources.

Founded nine years ago, Vast Data has gained momentum by offering AI-optimized data storage solutions. Unlike traditional tiered storage systems, Vast uses a unified flash storage architecture, helping companies manage all types of data—structured, semi-structured, and unstructured—in one place. This approach significantly enhances data retrieval speeds and lowers the cost of training and running AI models.

In addition to Pixar, xAI, ServiceNow, CoreWeave, and Lambda, the platform integrates with hardware from Supermicro, HPE, and Cisco. After its last round, Vast reported 2.5x to 3x annual revenue growth and achieved $200 million in ARR. Remarkably, it’s also been free cash flow positive for four years.

In the competitive landscape, Vast rivals Pure Storage (valued at $17B), Weka ($1.6B), and is building a database architecture to challenge Databricks.

Backed by investors like Fidelity, NEA, BOND Capital, and Drive Capital, Vast Data has so far raised $381 million. While the $25B valuation isn’t finalized, VCs are watching closely as Vast continues to transform AI data infrastructure.