Vast Data reaches $2 billion in ARR as valuation hits $30 billion
The AI infrastructure startup approaches Wiz’s valuation after closing Israel’s largest private tech funding round.
Vast Data’s rapid revenue growth offers new context for the $30 billion valuation revealed in its record $1 billion funding round this week.
The artificial intelligence infrastructure company, founded by Israeli entrepreneurs, has expanded its annual recurring revenue dramatically in recent years, reaching an estimated $2 billion by the end of 2025, according to industry estimates.
That figure helps explain the scale of the valuation disclosed on Monday, which made Vast the most valuable private technology company in Israel and placed it near the $32 billion valuation achieved by cloud security company Wiz in its pending sale to Google.
While the two companies operate in different segments of enterprise technology, their revenue trajectories provide a useful reference point for the scale of Vast’s business.
Vast Data was founded in 2016 by Renen Hallak, who serves as CEO and lives in the United States, together with Shachar Fienblit, who leads development and operations in Israel.
The company develops software that manages the storage and retrieval of the enormous datasets required for artificial intelligence systems. Its platform enables organizations to store massive volumes of information and retrieve them quickly enough for AI processors to operate efficiently.
For several years, Vast’s products were mainly used as enterprises shifted data infrastructure to the cloud. Demand accelerated sharply with the rapid expansion of artificial intelligence applications.
By 2023, the company had reached an annual recurring revenue run rate of $200 million. At the time, Vast said it intended to triple its revenue annually, and according to estimates it far exceeded that goal, reaching roughly $2 billion in ARR by the end of 2025.
The growth comes as artificial intelligence systems increasingly depend on the ability to process vast quantities of data quickly. Vast’s platform effectively functions as an operating system for AI data infrastructure, ensuring that powerful processors can access the information they need without delays.
Even the most advanced AI chips can face severe bottlenecks if data cannot be retrieved quickly enough, a challenge the company’s technology is designed to address.
Vast’s customers include some of the world’s largest banks, the animation studio Pixar, Elon Musk’s AI company xAI, and cloud infrastructure providers such as CoreWeave.
Its contracts typically run for five to seven years, and the company’s systems are considered highly “sticky.” Once organizations adopt the platform, switching to another storage architecture is difficult, resulting in relatively low customer churn.
The structure contrasts with the rapid adoption model seen in some enterprise software sectors but provides a stable and predictable revenue base once customers deploy the system.
The scale of Vast’s ARR is notable in part because it places the company among the largest private software businesses to emerge from Israel.
For comparison, Wiz, the cloud security company founded in 2020, reached $100 million in annual recurring revenue within 18 months, the fastest pace recorded by a software startup at the time.
Its ARR continued to climb rapidly, reaching $350 million in early 2024, surpassing $500 million by July 2024, and reaching an estimated $700 million by March 2025, when Google announced plans to acquire the company for $32 billion.
While the companies operate in different areas of enterprise technology, the comparison highlights how Vast’s revenue has expanded as demand for artificial intelligence infrastructure has surged.
Vast’s new funding round values the company at $30 billion, more than three times its $9.1 billion valuation in 2023.
The round raised $1 billion, although more than $500 million will go to early investors and employees selling shares rather than to the company itself.
Those shares were sold at a 15% discount to the valuation, a typical structure in large secondary transactions.
Since its founding, Vast had raised nearly $400 million prior to the current round. Investors include Nvidia, Tiger Global, Goldman Sachs, Fidelity, General Atlantic, D1 Capital Partners, NEA, BOND, Next47, Greenfield and 83North.
The company employs roughly 1,100 people, about a third of them in Israel. Its Israeli development operations are based at the Tel Aviv Expo complex, with an additional center opened in Haifa in 2021.
