Data center storage provider Vast Data Inc. is reportedly in talks to raise a multibillion-dollar funding round
Sources told Reuters today that Nvidia Corp. and CapitalG, Alphabet Inc.’s growth-stage startup fund, could back the investment. Multiple private equity and venture capital firms are expected to participate as well. It’s believed the round could close in the coming weeks.
Vast Data provides a software platform for powering data center storage environments. The platform keeps information in storage systems equipped with QLC memory, a type of low-cost flash. Those systems are managed by commodity servers equipped with central processing units.
Vast Data says that its software makes it relatively simple to recover from hardware failures. When a server malfunctions in a Vast Data environment, there’s no disruption to the QLC flash appliances that the platform uses to store information. This means no information is lost, which removes the need for administrators to perform manual data recovery.
If a QLC flash appliance fails, Vast Data can recover its contents using a technology dubbed LDECs. It works by splitting each file into multiple fragments and spreading those fragments across different storage systems. Should one of the systems go offline, the fragments that are still available can be used to reconstruct the file.
Competing storage platforms offer similar capabilities. According to Vast Data, those platforms must usually extract all the data contained in file fragments before they can reconstruct the original file. The company’s LDECs technology needs to extract only part of the data, which speeds up file recovery.
Vast Data says its platform also provides other benefits. The fact that the software only uses QLC flash removes the need for other types of storage hardware such as disk drives, which reduces complexity. Additionally, customers can add compute resources to their environments without provisioning more storage equipment and vice versa. That can help reduce infrastructure costs.
After its last funding round in 2023, Vast Data disclosed that its platform managed more than 10 exabytes of data for customers. That number has likely increased significantly since then. According to Reuters, the company’s annual recurring revenue topped $200 million last year and is projected to reach $600 million in 2026.
The funding round that Vast Data is in talks to raise could reportedly value it at up to $30 billion. That’s more than three times what it was worth after its last funding round. The valuation increase likely reflects not only the company’s recent revenue growth but also its growing presence in the artificial intelligence market.
Vast Data counts CoreWeave Inc. and several other AI cloud operators as customers. Earlier this year, the company launched a tool called AgentEngine that makes it easier to run AI agents on its storage platform. The feature speeds up tasks such as recovering agent processing results after an outage.
Image: Vast Data
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