Wasabi Technologies Inc., a Boston-based cloud storage provider, has secured $70 million in new equity financing at a $1.8 billion valuation, signaling a strategic push into artificial intelligence infrastructure and cyber-resilient data services. The investment raises the company’s total funding to more than $600 million as demand for AI-optimized storage solutions continues to accelerate. Wasabi plans to use the capital to expand its global footprint, enhance its product offerings, and advance its AI-focused infrastructure.
Oversubscribed Funding Round
The funding round exceeded initial expectations, according to Chief Financial Officer Michael Bayer, who said investor interest prompted an increase in the target amount. Lead investor L2 Point Management LLC, which also spearheaded a $250 million round in 2022, set the company’s valuation. New participants included Pure Storage Inc., a leader in all-flash, software-defined storage, reflecting a shared commitment to next-generation AI infrastructure.
Strategic AI Expansion
Wasabi is broadening its portfolio beyond traditional hard disk drive storage into high-performance storage classes designed for AI training, inference, and real-time data processing. The company recently introduced an NVMe-based storage class for AI and machine learning workloads, alongside Wasabi AiR, which leverages AI to generate metadata tags. These innovations position Wasabi as a key partner for enterprises seeking predictable, high-performance storage for data-intensive applications.
Disruptive Pricing Model
Founded in 2017, Wasabi disrupted the cloud storage market with its flat-rate “hot cloud” storage, eliminating egress and API fees. The company’s pricing remains simple and usage-based, recently adjusted from $5.99 to $6.99 per terabyte per month, still far below hyperscaler rates. Bayer emphasized that customers benefit from predictable costs, a major differentiator for organizations managing large-scale data and AI workloads.
AI Influence on Product Roadmap
Artificial intelligence is now central to Wasabi’s strategy, with clients increasingly retaining data for future AI applications. “Every company is going to be an AI company,” Bayer noted, highlighting the growing influence of AI on storage demand. The company’s products, including Covert Copy, enhance security by creating hidden, immutable backups that protect against ransomware and insider threats, responding to rising enterprise security concerns.
Global Reach and Customer Base
Wasabi now manages more than three exabytes of customer data across 16 global regions and serves clients in sectors including media, enterprise IT, and backup services. Customers such as iHeartMedia, the Boston Red Sox, Liverpool Football Club, and several Ivy League universities rely on Wasabi for cost-effective, secure cloud storage. Despite profitability, the company continues to prioritize growth, supported by investors aligned with its expansion-focused strategy.
Investor Perspective
L2 Point Managing Partner Kerstin Dittmar emphasized the strategic value of supporting a company with both innovative solutions and growth potential. Pure Storage’s involvement strengthens collaboration between the two storage innovators, aiming to meet the surging needs of AI workloads. Fidelity Management & Research also participated in the round, reinforcing confidence in Wasabi’s market positioning and long-term prospects.
Wasabi’s new funding round underscores its ambition to lead in AI-ready, cyber-resilient cloud storage. By combining high-performance storage solutions with predictable pricing and robust security features, the company is addressing evolving enterprise demands. As AI continues to reshape data management, Wasabi is positioning itself at the intersection of storage innovation, performance, and cyber resilience, preparing for the next stage of global growth.