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VAST Data, a tech company developing AI infrastructure, announced it has raised $118 million in a Series E funding round led by Fidelity Management & Research Company. This funding round, which also included investments from New Enterprise Associates (NEA), BOND Capital, and Drive Capital, has tripled the seven-year-old company’s valuation to $9.1 billion, up from $3.7 billion in 2021.
VAST Data intends to use this investment to enhance its infrastructure solutions that centralize data, allowing organizations to tackle significant data challenges and drive progress in technology, economics, social dynamics, and scientific research. Additionally, some funds will go towards buying back stock from existing shareholders.
Founded in 2016 with the goal of simplifying enterprise data storage, VAST Data has transformed into a unified data platform. This platform integrates storage, database, and containerized compute engine services into a single, scalable software solution. Supported by partners like Nvidia and CoreWeave, it provides a straightforward approach to managing and processing large volumes of data, supporting the development of next-generation AI applications.
These AI applications include AI-assisted discovery, enabling machines to solve major challenges such as developing life-saving treatments in a fraction of the time previously required. The platform features continuous computing that merges the VAST DataStore for file and object storage with the VAST DataBase for rapid data querying, and the VAST DataEngine for executing functions across data centers and cloud regions. This infrastructure supports languages like SQL and Python, streamlining AI pipeline management.
VAST Data’s unified platform has seen substantial adoption, attracting major enterprises like Zoom, Allen Institute, and Pixar Animation Studios. In the quarter ending September, when the platform was launched, VAST Data’s software bookings surpassed $1 billion. The company reported over three-fold year-over-year growth and positive cash flow for the past 12 quarters, with a gross margin nearing 90%.
With the new funding, VAST Data plans to expand its platform to further advance AI technologies. However, how the company intends to grow and improve its offerings to capture the attention of numerous emerging AI companies remains to be seen.
According to Renen Hallak, CEO and co-founder of VAST Data, having substantial and high-quality data that is well-organized and accessible is crucial in the AI and deep learning era. The VAST Data Platform aims to provide the AI infrastructure necessary for automated discovery to address humanity’s most complex challenges. Global spending on AI-centric systems is expected to exceed $308 billion by 2026, reflecting the technology’s rapid growth and significance.