Israeli startup Vast Data, one of the country’s most valuable private tech companies, has signed a huge $1.17 billion deal with CoreWeave. This new agreement is a big step forward for Vast, which builds key infrastructure used in AI data centers.
Vast’s software is a data management platform that helps store, organize, and access information quickly. It acts as the foundation for data centers, making it easier for AI systems to handle large amounts of data efficiently.
Without Vast’s technology, even powerful Nvidia GPUs wouldn’t be very useful, because AI needs fast access to data as much as it needs computing power. In simple terms, Vast’s platform works like an operating system for AI, turning raw computing power into real, usable intelligence.
The company’s technology helps organizations efficiently store and access unstructured data — such as emails, customer messages, videos, and PDFs. This type of information may seem messy but is essential, as it holds an organization’s real knowledge and history.
When Vast was founded in 2016 by Renen Hallak, its idea was seen as risky and different. The company used flash memory—which was considered too expensive at the time—to create fast and scalable storage systems for large businesses.
Vast’s software was first sold with its own hardware but now works on regular, widely available equipment. It makes flash memory much more efficient by compressing and optimizing data storage.
This approach helps cut costs and energy use, making flash-based systems affordable even for massive data centers. It also reduces the cost of training AI models, since data can be processed faster and more efficiently.
CoreWeave has quickly become one of the most talked-about companies in AI infrastructure. It provides cloud computing power using Nvidia GPUs to run AI systems. The company is now valued at $56 billion, with its stock price rising almost 200% since its IPO six months ago.
Both Vast and CoreWeave have close ties with Nvidia — the chipmaker is an investor in Vast and a major supplier for CoreWeave. Vast is now raising a new funding round, expected to include Nvidia, at a valuation of $25–30 billion, up from $9 billion previously.
The new long-term deal with CoreWeave is expected to give a big boost to Vast’s revenue. By early 2025, the company had about $200 million in annual recurring revenue and had become cash-flow positive. Industry reports also estimate that Vast’s annual order rate hit $1 billion in the first quarter of 2025.
Vast has around 300 employees in Israel. The company first grew as businesses began moving their data storage to the cloud, but the recent AI boom has greatly increased demand for its technology.
Vast earns revenue through long-term contracts that usually last five to seven years. Because its software is deeply built into customers’ systems, very few clients stop using it, giving the company a stable and predictable income.
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