Wasabi raises $70 million to expand AI-driven cloud storage

Written by Vriti Goshi

Wasabi Technologies has raised $70 million in new equity funding to take advantage of the rapid growth of AI-driven data workloads and evolving economics of cloud infrastructure.

The Boston-based cloud storage provider was valued at $1.8 billion in the round led by L2 Point Management with participation from existing backers including Pure Storage and Fidelity Management & Research Company. This funding brings Wasabi’s total funding to over $600 million.

The company said the funding will be used to expand its AI-focused infrastructure capabilities, expand its global presence, and further develop its product portfolio to address the proliferation and complexity of enterprise and AI-generated data.

Founded in 2017, Wasabi entered the market with a cloud storage model designed to challenge hyperscalers by offering predictable pricing with no egress or API request fees. This approach resonates with organizations facing rising storage costs as data-intensive applications such as generative AI, machine learning, and real-time analytics move into production.

In recent years, Wasabi has expanded its offerings beyond core object storage to support AI-centric use cases. Its portfolio includes Wasabi AiR, which applies AI-driven metadata tagging to stored data, and Wasabi Fire, an NVMe-based storage layer designed for high-performance training, inference, and real-time data pipelines. The company has also invested in security features such as multi-user authentication and ransomware resilient data protection.

The funding round comes amid increased investor attention to the less visible layers of AI infrastructure. While computing and GPUs are getting a lot of attention and funding, storage has emerged as a critical bottleneck as organizations struggle to manage, move, and secure growing amounts of data.

Wasabi reports managing more than 3 exabytes of data across 16 regions around the world, serving customers in areas such as cyber resilience, media and entertainment, and enterprise IT. As AI-driven data growth accelerates, the company is positioning itself as a specialist infrastructure player addressing an increasingly critical and strategic layer of the AI ​​stack.