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AI storage platform Vast Data aimed for $25B valuation in new round, sources say
Vast Data aims for a $25 billion valuation in a new funding round, significantly up from its $9 billion Series E valuation from December 2023. The company offers an AI-focused data storage platform, appealing to major customers like Pixar and ServiceNow. Vast has showcased impressive growth, including a 2.5x to 3x year-over-year increase and $200 million in ARR.
Key points
- Vast Data is currently seeking to raise funds to achieve a valuation of $25 billion, up from $9 billion.
- The company specializes in AI-friendly data storage solutions that support structured, semi-structured, and unstructured data.
- Vast Data's technology helps reduce model training costs and accelerates data retrieval, appealing to large enterprises and AI cloud providers.
- As of 18 months ago, Vast Data had an annual recurring revenue (ARR) of $200 million and has been free cash flow positive for the last four years.
- Vast competes with companies like Pure Storage and Weka, highlighting a competitive market in AI-driven data storage solutions.
Why it matters
- The increase in demand for AI and machine learning tools in data management parallels the rise of cloud solutions and data-centric business models.
- Vast's push for a higher valuation reflects broader trends where tech companies, particularly in AI and data, are experiencing substantial growth investments.
- The 2025 IT Trend indicates a shift towards integrated solutions that combine hardware and software, which is central to Vast's business model.
Vast Data's ambitious aim for a $25 billion valuation signifies confidence in its AI-driven data storage solutions, aligning with current technology trends and the growing importance of effective data management in enterprise operations.