Vast, an artificial intelligence startup backed by Alibaba, is targeting a $2 billion valuation. The move comes as AI companies increasingly outpace crypto projects in drawing investor interest, signaling a broader shift in tech market dynamics.
Vast's $2B target
The company is aiming for a valuation of $2 billion, according to people familiar with the matter. Alibaba is among the backers supporting the round. Vast has not publicly commented on the valuation target.
Alibaba's backing
Alibaba's involvement gives Vast a significant strategic partner. The Chinese tech giant has been expanding its AI investments as it competes with other major players in the space.
The AI vs. crypto shift
AI startups are now outpacing crypto for investor attention, a reversal from previous years when digital assets dominated headlines and funding rounds. The shift is influencing tech market dynamics, with venture capital flowing more heavily into AI infrastructure and applications. Crypto projects, meanwhile, face a tougher fundraising environment as investors reassess risk and returns.
This trend is not limited to any single region. Globally, AI-related deals are drawing larger checks and higher valuations than most crypto startups. The change reflects a maturing market where practical applications of AI are seen as more immediately viable than many blockchain-based ventures.
For Vast, the timing aligns with this broader appetite for AI. The company's $2 billion target would place it among the more valuable private AI startups, though it still trails leaders like OpenAI and Anthropic.
