Latest news with #Run:ai
The Hindu
6 days ago
- Business
- The Hindu
Alphabet's CapitalG, Nvidia in talks to fund Vast Data at up to $30 billion valuation, sources say
Alphabet's growth-stage venture arm CapitalG and Nvidia are in talks to invest in artificial intelligence infrastructure provider Vast Data in a new funding round that could value the startup as high as $30 billion, two sources said. The startup is raising several billion dollars from tech giants, private equity and venture capital investors, which could make it one of the most valuable AI startups, the two sources with knowledge of the matter said, as companies building the backbone for the AI boom come into sharper focus. CapitalG and existing backer Nvidia are in discussions to participate in the round, which could close in the next few weeks, according to the sources, who requested anonymity to speak on private matters. New York-headquartered Vast Data develops storage technology specifically designed for large AI data centres, enabling efficient data movement between graphics processors (GPUs) made by the likes of Nvidia. Its clients include companies such as Elon Musk's xAI and CoreWeave, and its value in the AI supply chain makes it an attractive acquisition target, bankers and analysts said. Nvidia declined to comment, while Vast Data and CapitalG did not respond to requests for comment. TechCrunch earlier reported Vast Data's fundraising efforts, but the valuation of up to $30 billion and the expected involvement of CapitalG and Nvidia have not been reported previously. Vast Data CEO Renen Halak has said the company is free cash flow positive. The company earned $200 million in annual recurring revenue (ARR) by January 2025, with a strong backlog of orders and projections to grow ARR to $600 million next year, according to a separate source familiar with its financials. The company has raised roughly $380 million to date, and its last funding round in 2023 valued it at $9.1 billion. Vast Data has said it would consider an initial public offering at the right time. While no listing is imminent, according to another source familiar with the matter, investors and bankers view the data infrastructure firm as a likely IPO candidate. Vast Data last year hired Amy Shapero, its first chief financial officer, who was previously in the same role at publicly listed e-commerce giant Shopify, in a move that could signal preparations for an IPO. Mergers and acquisitions activity has also been heating up in the sector, and Nvidia has been acquiring companies that add complementary software and hardware products beyond its flagship GPUs. In 2020, it bought networking chip and cable maker Mellanox, which has helped Nvidia build integrated systems featuring its latest Blackwell chips. It has also acquired software companies such as Run:ai, which helps engineers optimise data centre AI hardware. Vast Data's storage architecture is based on a system of flash storage devices and other off-the-shelf hardware, combined with its specialised software for data access and movement. The company says adopting its technology can reduce the cost of building and running large AI models. Several companies, such as Weka and DDN, are pursuing similar efforts, but analysts and industry executives say Vast Data's technology is more mature than that of its rivals. Shares of Nvidia slumped 2.3% and Alphabet stock sunk 1.4% during regular trading on Friday.
Time of India
02-08-2025
- Business
- Time of India
Alphabet's CapitalG, Nvidia in talks to fund Vast Data at up to $30 billion valuation
Alphabet 's growth-stage venture arm CapitalG and Nvidia are in talks to invest in artificial intelligence infrastructure provider Vast Data in a new funding round that could value the startup as high as $30 billion, two sources said. The startup is raising several billion dollars from tech giants, private equity and venture capital investors, which could make it one of the most valuable AI startups, the two sources with knowledge of the matter said, as companies building the backbone for the AI boom come into sharper focus. CapitalG and existing backer Nvidia are in discussions to participate in the round, which could close in the next few weeks, according to the sources, who requested anonymity to speak on private matters. New York-headquartered Vast Data develops storage technology specifically designed for large AI data centers, enabling efficient data movement between graphics processors (GPUs) made by the likes of Nvidia. Its clients include companies such as Elon Musk's xAI and CoreWeave, and its value in the AI supply chain makes it an attractive acquisition target, bankers and analysts said. Nvidia declined to comment, while Vast Data and CapitalG did not respond to requests for comment. TechCrunch earlier reported Vast Data's fundraising efforts, but the valuation of up to $30 billion and the expected involvement of CapitalG and Nvidia have not been reported previously. Vast Data CEO Renen Halak has said the company is free cash flow positive. The company earned $200 million in annual recurring revenue (ARR) by January 2025, with a strong backlog of orders and projections to grow ARR to $600 million next year, according to a separate source familiar with its financials. The company has raised roughly $380 million to date, and its last funding round in 2023 valued it at $9.1 billion. Vast Data has said it would consider an initial public offering at the right time. While no listing is imminent, according to another source familiar with the matter, investors and bankers view the data infrastructure firm as a likely IPO candidate. Vast Data last year hired Amy Shapero, its first chief financial officer, who was previously in the same role at publicly listed ecommerce giant Shopify, in a move that could signal preparations for an IPO. Mergers and acquisitions activity has also been heating up in the sector, and Nvidia has been acquiring companies that add complementary software and hardware products beyond its flagship GPUs. In 2020, it bought networking chip and cable maker Mellanox, which has helped Nvidia build integrated systems featuring its latest Blackwell chips. It has also acquired software companies such as Run:ai, which helps engineers optimize data center AI hardware. Vast Data's storage architecture is based on a system of flash storage devices and other off-the-shelf hardware, combined with its specialized software for data access and movement. The company says adopting its technology can reduce the cost of building and running large AI models. Several early-stage companies, such as Weka and DDN, are pursuing similar efforts, but analysts and industry executives say Vast Data's technology is more mature than that of its rivals.
The Star
01-08-2025
- Business
- The Star
Exclusive-Alphabet's CapitalG, Nvidia in talks to fund Vast Data at up to $30 billion valuation, sources say
FILE PHOTO: An Nvidia logo is shown at SIGGRAPH 2017 in Los Angeles, California, U.S. July 31, 2017. REUTERS/Mike Blake/File Photo NEW YORK/SAN FRANCISCO (Reuters) -Alphabet's growth-stage venture arm CapitalGand Nvidia are in talks to invest in artificial intelligence infrastructure provider Vast Data in a new funding round that could value the startup as high as $30 billion, two sources said. The startup is raising severalbillion dollars from tech giants, private equity and venture capital investors, which could make it one of the most valuable AI startups, the two sources with knowledge of the matter said, as companies building the backbone for the AI boom come into sharper focus. CapitalG and existing backer Nvidia are in discussions to participate in the round, which could close in the next few weeks, according to the sources, who requested anonymity to speak on private matters. New York-headquartered Vast Data develops storage technology specifically designed for large AI data centers, enabling efficient data movement between graphics processors (GPUs) made by the likes of Nvidia. Its clients include companies such as Elon Musk's xAI and CoreWeave, and its value in the AI supply chain makes it an attractive acquisition target, bankers and analysts said. Nvidia declined to comment, while Vast Data and CapitalG did not respond to requests for comment. TechCrunch earlier reported Vast Data's fundraising efforts, but the valuation of up to $30 billion and the expected involvement of CapitalG and Nvidia have not been reported previously. Vast Data CEO Renen Halak has said the company is free cash flow positive. The company earned $200 million in annual recurring revenue (ARR) by January 2025, with a strong backlog of orders and projections to grow ARR to $600 million next year, according to a separate source familiar with its financials. The company has raised roughly $380 million to date, and its last funding round in 2023 valued it at $9.1 billion. Vast Data has said it would consider an initial public offering at the right time. While no listing is imminent, according to another source familiar with the matter, investors and bankers view the data infrastructure firm as a likely IPO candidate. Vast Data last year hired Amy Shapero, its first chief financial officer, who was previously in the same role at publicly listed e-commerce giant Shopify, in a move that could signal preparations for an IPO. Mergers and acquisitions activity has also been heating up in the sector, and Nvidia has been acquiring companies that add complementary software and hardware products beyond its flagship GPUs. In 2020, it bought networking chip and cable maker Mellanox, which has helped Nvidia build integrated systems featuring its latest Blackwell chips. Ithas also acquired software companies such as Run:ai, which helps engineers optimize data center AI hardware. Vast Data's storage architecture is based on a system of flash storage devices and other off-the-shelf hardware, combined with its specialized software for data access and movement. The company says adopting its technology can reduce the cost of building and running large AI models. Several early-stage companies, such as Weka and DDN, are pursuing similar efforts, but analysts and industry executives say Vast Data's technology is more mature than that of its rivals. (Reporting by Max A. Cherney in San Francisco and Krystal Hu and Milana Vinn in New York; Additional reporting by Kenrick Cai in San Francisco and Echo Wang in New York; Editing by Sayantani Ghosh and Jamie Freed)
Yahoo
25-02-2025
- Business
- Yahoo
Nvidia Expected to Surpass Revenue Estimates as Blackwell Demand Grows
Nvidia (NVDA, Financials) is projected to exceed revenue expectations for its January quarter, supported by high demand for its Blackwell architecture and strong financial performance, according to analysts. Warning! GuruFocus has detected 3 Warning Signs with NVDA. Piper Sandler maintained a $175 price target overweight rating on Nvidia. Citing its trend of surpassing financial expectations, analyst Harsh Kumar expects the business will beat sales projections by $1.8 billion. Reiterating its leadership in the semiconductor sector, Nvidia announced a 152% year-over-year sales gain. Supported by rising capital expenditures from hyperscalers, the company's Blackwell architecture is seeing ongoing demand. Improvements in supply chains since the first launch phases in October and January have relieved restrictions; demand is expected to continue strong through 2025, so maybe more regular profit beating will result. With 76% gross profit margins, it is clearly leading in its sector in efficiency. With a price-to-earnings ratio of 52, which reflects great investor confidence, revenue increase for fiscal 2025 is projected at 112%. Other analysts also see bright future prospects for Nvidia. With a $200 price objective and consecutive revenue beats of $2 billion, Cantor Fitzgerald assigned an Overweight rating. With a $190 target, Evercore ISI rated Nvidia as an Outperform, highlighting its artificial intelligence supremacy. Separately, Nvidia has sued European Union authorities over their investigation of Run:ai purchase. Though legal questions still exist, the EU ratified the agreement in December. Investors are watching Nvidia's forthcoming income statement and further updates on Blackwell for more direction. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
24-02-2025
- Business
- Yahoo
Nvidia Challenges EU Regulator's Probe Into Run:ai Acquisition
Nvidia (NVDA, Financials) filed a lawsuit against the European Commission, contesting an investigation into its $700 million acquisition of Israeli software firm Run:ai, Reuters said Monday. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Filed at the General Court in Luxembourg, the action claims that whilst not fulfilling the EU's merger control criteria, the European Commission illegally granted Italy's demand to examine the agreement. Usually, the Merger Regulation of the European Union calls for probes only if certain revenue targets are reached. Under its national Competition Act, Italy, however, expressed concerns and set off an EU-level investigation. By approving the inquiry based on what Nvidia regards as weakly defined discretionary powers, the commission abused its jurisdiction, according to the firm. Although the action has no bearing on the purchase itself, the result might affect future EU control of mergers and acquisitions, especially those involving semiconductor companies and artificial intelligence companies. Run:ai was acquired by Nvidia in December 2024. Israeli startup Run:ai develops AI workload management software that runs numerous processes in parallel to optimize GPU utilization. It plans to open-source its tools to promote compatibility outside of Nvidia's hardware. Regarding the complaint, the European Commission has not offered comments. This article first appeared on GuruFocus. Sign in to access your portfolio
