Vast Data aims for a $25 billion valuation in a new funding round, sources report

Vast Data targets a $25B valuation, a leap from its $9B last year, driven by AI-friendly storage tech.

: Vast Data is raising a funding round targeting a substantial valuation increase to $25 billion. This marks an impressive jump from its earlier Series E valuation of $9 billion achieved in December 2023, as the company benefitted from rapid growth and AI advancements. The firm's platform, popular with enterprises like Pixar and xAI, integrates CPU-GPU hardware and eliminates data tiers, aiding AI training and inference efficiency. Despite competitive pressure from companies like Pure Storage and Weka, Vast has maintained significant financial health, reporting $200 million in ARR and positive cash flow.

Vast Data, a company specializing in AI-friendly storage solutions, is making strides in the investment world as it seeks to raise funds at a $25 billion valuation. This significant increase follows its $9 billion valuation in the Series E funding round closed in December 2023. The company's innovative approach to data storage, which eliminates traditional tiers and focuses on flash storage, has made it particularly appealing in the AI sector. This model allows for streamlined data retrieval, which Vast Data claims leads to reduced costs in AI model training and inference, a critical advantage in the growing AI landscape.

The firm has developed a unified data management platform that combines structured, semi-structured, and unstructured data in one location. This approach appeals to large enterprises such as Pixar and next-generation AI cloud providers like CoreWeave and Lambda. As the demand for efficient and cost-effective storage solutions grows, Vast Data's technology positions itself as a valuable asset for companies navigating the AI industry.

Vast Data is seen as a formidable competitor to companies like Pure Storage and Weka, which recently secured a $1.6 billion valuation post a $140 million funding round. Vast Data's CEO and co-founder, Renen Hallak, has emphasized the company's exponential growth, highlighting its doubling to tripling annual revenue rates. Hallak has also noted that the company has been free cash flow positive for four years, an impressive feat that signals financial stability to potential investors.

Despite its success, Vast Data did not comment on the ongoing funding round, leaving room for speculation about whether the $25 billion valuation will be achieved. Insiders acknowledge that while the valuation target is high, the company's strong growth trajectory and market position may make it feasible in the eyes of venture capitalists closely watching the deal.

Vast Data has raised $381 million from investors including Fidelity Management & Research Company and NEA. This substantial backing further underscores the belief in its business model and technological advancements. The company's expansion plans and potential new funding will undoubtedly have significant implications for the AI and data storage sectors, promising continued development and competition.

Sources: TechCrunch, Vast Data

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