Storage co Vast Data raising several billion dollars – report

Hybrid data storage company VAST Data, which was founded by Israeli entrepreneurs and has a development center in Tel Aviv, is in advanced talks with Alphabet (Google) and Nvidia to raise several billion dollars at a company valuation of up to $30 billion, two sources have told “Reuters.” If such a financing round is completed, VAST Data will become the second-most valuable privately-held Israeli tech company after cybersecurity company Wiz.

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The round will be led by CapitalG, the investment arm of Alphabet, together with Nvidia, which is an existing investor. VAST Data is developing advanced storage technology for AI data centers, allowing swift and efficient data transfer between GPU chips, a key component of infrastructures for running smart models like ChatGPT. Its customers include companies like Elon Musk’s xAI, cloud company CoreWeave, and leading enterprises in the security, healthcare, and finance sectors.

Despite operating in stealth for nearly a decade, VAST Data has become a key player in the AI sector, including through ongoing strategic partnerships with Nvidia. According to industry sources, Nvidia CEO Jensen Huang mentions the company in almost every speech, due to its critical role as a connector between Nvidia’s GPU chips and the cloud services that run smart models.

VAST Data currently has 1,000 employees, half of whom are in Israel, where the main development center is at the Tel Aviv Exhibition Center. The company is led by two Americans – CEO Renen Hallak from the US, together with president Mike Wing, a former Dell executive.

Since it was founded in December 2015, the company has shown impressive growth. Last January it reported annual recurring revenue (ARR) of $200 million, with a forecast for a jump to $600 million in the coming year. In recent weeks, VAST Data has positioned itself as an integral part of Nvidia’s strategic AI programs, including the AIQ platform that allows AI agents to access any type of data, such as tables, texts, images and videos, and process the data in real time. Market sources estimate that the company is preparing for an IPO, which will likely be one of the biggest flotations in the coming years.

“Reuters” said that Nvidia declined to comment, while No comment was forthcoming from Vast Data and CapitalG.

Published by Globes, Israel business news – en.globes.co.il – on August 1, 2025.

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