NVIDIA (NVDA)-backed data storage software firm Vast Data has announced the completion of a new funding round of approximately $1 billion, elevating the company's valuation to $30 billion. This represents a more than threefold increase from its $9.1 billion valuation in 2023, underscoring the capital market's sustained enthusiasm for the AI infrastructure sector. Co-founder and CEO Renen Hallak stated that this round included both primary financing and secondary financing, the latter allowing employees and early investors to sell a portion of their shares. This structure also provides the company with greater flexibility regarding whether and when to proceed with an initial public offering (IPO). The funding round was co-led by Drive Capital and Access Industries, with participation from existing shareholders including NVIDIA, Fidelity Investments, and New Enterprise Associates. Vast Data primarily provides software and storage appliances designed to replace traditional data storage and database systems, enabling more efficient support for customers training and running artificial intelligence programs. The company's clients include JPMorgan Chase (JPM), xAI, and CoreWeave (CRWV). Hallak revealed that the company has accumulated approximately $4 billion in orders over its ten-year history, with the majority originating in the past year. The company is currently profitable at the operational level. He indicated that the new funds may be used for mergers and acquisitions and for investments in companies related to the AI ecosystem to further expand its footprint. To advance its preparations for a public listing, Vast Data hired former Shopify (SHOP) Chief Financial Officer Amy Shapero as its CFO about 18 months ago. Hallak said the company expects to be in a position to be ready for an IPO by the end of this year, after which a decision will be made on whether to proceed. Analysts point out that Vast Data is currently attempting to expand from AI-focused customers to a broader base of large enterprise clients, while also collaborating with funds from the United Arab Emirates and Singapore to drive regional expansion. Drive Capital co-founder Chris Olsen said Vast possesses "industry-changing technology, the right timing, and a highly attractive business model." However, he also noted that the challenge lies in persuading enterprises to replace their existing systems, as the traditional systems themselves are not inherently "broken." Nevertheless, using support for AI workloads as an entry point makes the sales rationale more compelling.