Wasabi Technologies announced it has raised $70 million in a new equity round led by L2 Point Management, with participation from Pure Storage and existing investor Fidelity Management & Research Company, valuing the cloud storage provider at $1.8 billion.
The financing brings Wasabi’s total funding to more than $600 million and will be used to expand the company’s push into AI infrastructure, extend its global footprint, and broaden its product portfolio as enterprises and AI developers contend with rapidly growing data volumes.
Wasabi positions itself as an alternative to hyperscale cloud providers by offering what it describes as predictable pricing for storage, built around a “no egress fees” and “no API request fees” model. The company launched its flagship Hot Cloud Storage in 2017 and has since added products aimed at supporting data-intensive AI workloads, including tools for metadata tagging and higher-performance storage tiers designed for training and inference.
The company’s newer offerings include Wasabi AiR, which pairs hot cloud storage with AI-powered metadata tagging, and Wasabi Fire, an NVMe-based storage class aimed at compute-heavy workloads such as model training, real-time inference, data logging, and media processing pipelines. Wasabi also said it has strengthened security capabilities through multi-user authorization and Covert Copy, a patent-pending ransomware-resilience feature designed to keep critical data protected and inaccessible to attackers.
Pure Storage’s investment signals a deeper relationship between the two storage companies as customers build modern data stacks that blend cost discipline with performance for AI-era use cases. Wasabi said the market’s focus on GPUs has obscured the importance of storage in enabling AI systems to reliably access, move, and retain data at scale.
Wasabi said it manages more than three exabytes of data across 16 global regions and counts customers in sectors including backup, cyber resilience, media and entertainment, and enterprise IT, as well as organizations with large-scale data retrieval and archiving needs. The company cited iHeartMedia, the Boston Red Sox, Liverpool Football Club, Toshiba, and Cornell among its customer base.
KEY QUOTES:
“We’re ushering in the next generation of cloud storage, powering data-intensive workloads like generative AI and autonomous systems. This funding underscores Wasabi’s strong market position and continued growth as enterprises and AI developers alike seek a better, more predictable alternative to the hyperscalers.”
David Friend, Co-Founder and CEO, Wasabi Technologies
“Storage may not receive the same attention as GPUs, but without it, the use of AI tools and technology grinds to a halt. Wasabi’s innovative solutions help to make storage both high-performance and affordable, and we look forward to supporting the company’s next stage of growth.”
Kerstin Dittmar, Managing Partner and Chief Investment Officer, L2 Point
“AI is changing the way enterprises manage and store data. Wasabi is demonstrating strong execution in delivering scalable, low-cost cloud storage built for AI ready data environments without added complexity or unpredictable costs. Our investment reflects a shared focus on building the next generation of AI infrastructure that is intelligent by design and simple to deploy and operate.”
Krishna Gidwani, Vice President, Strategy and Corporate Development, Pure Storage
