Vast Data, an artificial intelligence software and storage startup previously supported by Nvidia, has successfully raised a substantial funding round. Fidelity Investments spearheaded the investment, with participation from notable venture capital firms NEA and Bond. The funding has propelled Vast Data’s valuation to over $9 billion, a significant leap from its 2021 valuation of $3.7 billion.
The seven-year-old company has outlined strategic plans for the newly acquired capital. A portion of the funds will be utilized for a stock buyback initiative, enabling Vast Data to repurchase shares from existing shareholders. Interestingly, the stock buyback price, while still impressive, suggests a valuation slightly lower than the $9 billion implied by Fidelity’s funding.
This move reflects Vast Data’s commitment to enhancing shareholder value and consolidating ownership. The company’s focus on AI infrastructure places it at the forefront of technological innovation, aligning with the growing demand for advanced storage solutions in the AI sector.
The funding round, led by Fidelity, underscores the confidence of major investors in Vast Data’s potential. As the AI landscape continues to evolve, this strategic move positions Vast Data as a key player with the financial backing to drive future advancements in AI software and storage technologies.
