Generative AI, ML training, and autonomous systems overwhelm traditional cloud storage providers. Hyperscalers now charge unpredictable fees for API requests and other “hidden” costs, creating barriers for enterprises and AI developers needing affordable infrastructure.
Wasabi Technologies solves this with its Hot Cloud Storage, offering cost-predictable storage with no egress or API fees. Today, Wasabi raised $70 million in new equity funding at a $1.8 billion valuation, led by L2 Point Management and backed by Pure Storage, as well as existing investors such as Fidelity Management & Research Company.
This brings total funding to over $600 million, fueling expansion into AI infrastructure, global reach, and product enhancements.
Storing the world’s data
Co-founded by David Friend, Wasabi was launched in 2017 to disrupt the flawed cloud storage model dominated by hyperscalers. A friend saw firsthand how unpredictable pricing and vendor lock-in stifled innovation in data-heavy industries.
“We’re ushering in the next generation of cloud storage, powering data-intensive workloads like generative AI and autonomous systems,” said Friend.
Wasabi’s core technology is Hot Cloud Storage, now expanded for AI with Wasabi AiR (AI-powered metadata tagging for hot cloud storage) and Wasabi Fire (NVMe-class storage for compute-intensive AI/ML training, real-time inference, data logging, and media pipelines—all without egress or hidden fees). Security features include multi-user authorisation and patent-pending Covert Copy, a ransomware-resistant tool that keeps critical data invisible during cyberattacks.
Other features include predictable, flat pricing, high-performance that rivals hyperscalers, and AI-first optimisations at a fraction of the cost. Unlike AWS S3, Google Cloud Storage, or Azure Blob Storage, Wasabi eliminates these traps, delivering simplicity, speed (3+ exabytes managed across 16 regions), and no vendor lock-in.
What’s next?
Wasabi will deploy $70 million to scale its AI-first cloud storage, expand globally, and enhance its portfolio to meet surging data demands.
TFN contacted Wasabi for comment regarding diversity and inclusion; no response was received at the time of publication.
