CapitalG, Nvidia to fund Vast Data at up to $30-B valuation

Alphabet's growth-stage venture arm CapitalG and Nvidia are in talks to invest in artificial intelligence (AI) infrastructure provider Vast Data in a new funding round that could value the startup as high as $30 billion, two sources said.

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The startup is raising several billion dollars from tech giants, private equity and venture capital investors, which could make it one of the most valuable AI startups, the two sources with knowledge of the matter said, as companies building the backbone for the AI boom come into sharper focus.

CapitalG and existing backer Nvidia are in discussions to participate in the round, which could close in the next few weeks, according to the sources, who requested anonymity to speak on private matters.

New York-headquartered Vast Data develops storage technology specifically designed for large AI data centers, enabling efficient data movement between graphics processors (GPUs) made by the likes of Nvidia.

Its clients include companies such as Elon Musk's XAI and CoreWeave, and its value in the AI supply chain makes it an attractive acquisition target, bankers and analysts said.