Exclusive: Nvidia-backed Vast Data inks $1.17 billion AI deal with CoreWeave

AI startup Vast Data has secured a $1.17 billion commercial agreement with cloud provider CoreWeave, designating Vast as the primary data platform for CoreWeave's AI cloud infrastructure, which supports GPU-driven AI model training. This expanded partnership, driven by surging demand for AI infrastructure, provides a significant revenue stream for Vast Data, which is free cash flow positive and projects $200 million in annual recurring revenue by January 2025. The deal underscores robust investment in generative AI infrastructure and is expected to accelerate Vast's fundraising efforts, potentially leading to a $30 billion valuation and an eventual IPO.

Analysis

AI startup Vast Data has secured a significant $1.17 billion commercial agreement with cloud provider CoreWeave, designating Vast as the primary data platform for CoreWeave's GPU-driven AI cloud infrastructure. This multi-year contract, typically spanning three to five years, provides a substantial revenue stream for Vast Data, reinforcing its critical role in the burgeoning AI infrastructure market and highlighting escalating demand for specialized data solutions.

This expanded partnership underscores Vast Data's strong market position, further evidenced by its free cash flow positive status and projected $200 million in annual recurring revenue by January 2025. The company's ability to secure such a large contract, while also serving other major cloud providers like AWS and AI labs such as xAI, demonstrates its broad industry adoption and technological relevance.

The agreement is expected to significantly accelerate Vast Data's fundraising efforts, with reports indicating potential new capital raises valuing the company up to $30 billion, a substantial increase from its 2023 valuation of $9.1 billion. With potential investment from CapitalG and Nvidia, and the recent hiring of a former Shopify CFO, Vast is increasingly positioned as a strong IPO candidate, reflecting the strongly positive sentiment surrounding its growth trajectory.

Key Decisions for Investors

• Monitor Vast Data's continued growth and fundraising rounds, as its accelerating valuation and strategic hires position it as a strong future IPO candidate.
• Evaluate indirect investment opportunities in companies closely tied to the AI infrastructure boom, such as CoreWeave (if publicly traded or through its investors) or other cloud providers and GPU manufacturers benefiting from increased AI demand.
• Assess the broader generative AI infrastructure market for similar high-growth private companies, recognizing the substantial capital flowing into this sector as evidenced by Vast's $1.17 billion deal and potential $30 billion valuation.