VAST Data raises $1B at $30B valuation as AI storage demand surges

VAST Data has raised $1 billion in funding with more than half the cash destined for staff stockholders and early investors.

The news was first reported by Israel's Calcalist outlet, which said the valuation made VAST the most valuable private high-tech company in Israel. Total funding raised to date after this billion-dollar F-round at a $30 billion valuation is $1.38 billion. This latest raise dwarfs the $118 million E-round in 2023, when it was valued at $9.1 billion. At that time, its annual recurring revenue run rate was $200 million. It must be higher than that now to justify the 3.3x valuation increase, possibly more than $600 million. With a single CoreWeave deal totaling $1.17 billion, VAST's ARR could even be topping $2 billion.

 The surge in AI GPU compute demand has had an enormously positive impact on VAST, which has built AI features into its software, now called an AI OS. It has benefited from significant sales to AI-focused hyperscalers such as X (formerly Twitter) and neoclouds providing GPUs-as-a-Service like CoreWeave and Lambda.

Everpure, the rebranded Pure Storage, another all-flash storage array provider, has a $20.76 billion market capitalization and reported $3.7 billion in revenues for its fiscal 2026.

NetApp, which supplies hybrid disk and flash storage as well as all-flash arrays, has a $19.85 billion capitalization and its fiscal 2025 revenues were $6.65 billion. 

The VAST valuation represents its own and investor views of its future potential, not its current worth. They are possibly thinking that VAST could become a bigger business than either Everpure or NetApp.

However, they are betting that VAST's fortunes will not be adversely impacted too much by the current shortages and price rises affecting flash memory supply. VAST Data has been approached for comment and said: "VAST Data confirms that it has raised primary Series F preferred capital at a $30 billion valuation and concurrently is allowing certain employees and early investors to sell shares in a secondary tender offer. While the tender offer process is underway, SEC regulations prohibit the company from providing additional information."