Startup Aims to Challenge Major Cloud Providers with Distributed Data Storage Solution

The startup aiming to challenge major cloud providers with a distributed data storage solution faces a complex regulatory environment in 2025, as governments worldwide tighten data privacy and cybersecurity laws. Notably, regulatory frameworks now impose stricter cross-border data transfer rules and zero-trust security requirements, with penalties reaching up to $4.2 million for non-compliance under regulations like NYDFS cybersecurity rules[1]. Experts emphasize the growing demand for unified global data protection standards akin to GDPR, compelling startups to implement robust, adaptive compliance strategies to avoid severe financial penalties and maintain customer trust[2][5].

In a significant development, distributed data storage startup Tigris Data has raised $25 million in a Series A funding round, led by Spark Capital and joined by existing investors like Andreessen Horowitz, as it seeks to challenge the dominance of major cloud providers like AWS, Google Cloud, and Microsoft Azure[1]. This comes amidst a broader trend of innovation in data storage, with companies like Cloudian enhancing storage systems to support AI's massive data needs by applying parallel computing, thus simplifying data management and access for AI models[4]. Meanwhile, other startups like Cerabyte are introducing novel ceramic-based storage solutions, further diversifying the landscape of data storage options[2].

The startup’s distributed data storage solution has attracted regulatory attention for its potential to enhance data sovereignty and compliance with stringent privacy laws like GDPR. European regulators view such innovations favorably, as these solutions "adapt to local compliance needs and regional data sovereignty," offering more tailored protections than traditional cloud giants, according to a 2025 analysis of GDPR-compliant storage providers[1]. While no direct government approvals or sanctions have yet been reported, experts highlight that startups embedding governance and security-by-design frameworks are better positioned to meet rising regulatory demands in data privacy and security[5][9].

A new startup, Tigris Data, aims to challenge major cloud providers like AWS, Google Cloud, and Microsoft Azure by launching a distributed data storage solution tailored for AI workloads worldwide. Founded by the team behind Uber's storage platform, Tigris has raised $25 million in Series A funding led by Spark Capital to build localized data centers that support low-latency, billion-file scale storage replicated across global AI compute hubs, addressing growing international demand for distributed computing[1]. Global response to this innovation underscores a shift as enterprises seek alternatives to centralized "Big Cloud" storage, enabling data to move seamlessly with AI compute resources across regions[1].

Startup Tigris Data is challenging major cloud providers by developing an AI-native distributed storage platform that automatically replicates data to where GPUs are located, supports billions of small files, and offers low-latency access tailored for modern AI workloads, including training and inference[1]. Leveraging a network of localized data centers and drawing on engineering expertise from Uber’s storage platform, Tigris recently secured $25 million in Series A funding led by Spark Capital to scale its solution against incumbents like AWS and Microsoft Azure[1]. CEO Ovais Tariq emphasized, "without storage, compute is nothing," highlighting the critical need for distributed storage that moves with AI compute resources to meet the exponentially growing data demands of AI applications[1].

**Breaking News Update**: Tigris Data, a distributed data storage startup, is challenging major cloud providers with its AI-native storage platform. The company recently raised $25 million in a Series A round, led by Spark Capital, to develop localized data storage centers that automatically replicate data to where GPUs are located, supporting billions of small files and low-latency access for training and inference workloads[1]. According to Ovais Tariq, CEO of Tigris Data, "We want to provide the same option for storage, because without storage, compute is nothing," reflecting the startup's strategy to mirror the distributed computing approach for data storage[1].

In a significant move to support decentralized data storage solutions, regulatory bodies are showing increased interest in ensuring compliance with emerging technologies. Tigris, a distributed data storage startup, has raised $25 million to expand its network, emphasizing data sovereignty and control—a key concern for companies in highly regulated industries like finance and healthcare[4]. As governments focus on data privacy and security, startups like Tigris are likely to face increased scrutiny under evolving regulations such as GDPR and CCPA, which emphasize data protection and jurisdiction-specific compliance[6].

Startup Tigris has raised fresh capital to aggressively expand its distributed data storage network, targeting a presence in London, Frankfurt, and Singapore by Q2 2026 to directly compete with AWS, Google Cloud, and Azure in global markets[1]. “Companies are becoming more and more aware of how important the data is, how it’s fueling the LLMs, how it’s fueling the AI,” said Tigris co-founder Tariq, emphasizing that demand is surging as enterprises in regulated sectors like European finance and Asian healthcare seek alternatives that ensure data sovereignty and avoid vendor lock-in[1]. Industry analysts note that Tigris has grown 8x year-over-year since its 2021 founding, with three U.

## Breaking News: Startup Aims to Challenge Major Cloud Providers with Distributed Data Storage Solution **Technical Analysis** San Jose–based startup Tigris has launched a distributed data storage platform that enables enterprises to access the same filesystem across multiple cloud providers and regions without incurring egress fees, a direct challenge to the dominant pricing models of AWS, Azure, and Google Cloud[2]. The platform already operates three data centers—in Virginia, Chicago, and San Jose—with plans to expand into London, Frankfurt, and Singapore in early 2026, reflecting a technical architecture designed for both low-latency access and compliance with strict data sovereignty requirements in regulated industries[2]. **Implications** “Companies are becoming more and more aware

Industry experts view the distributed data storage startup, Tigris, as a significant challenger to major cloud providers by addressing critical pain points like egress fees and data sovereignty. Fal’s Taskaya highlighted Tigris’s unique ability to “scale workloads in any cloud by providing access to the same data filesystem without charging egress,” a stark contrast to traditional cloud costs[2]. Tariq, a company leader, emphasized the growing enterprise demand for data control, noting, “Companies are becoming more and more aware of how important the data is… They want to be more in control” amid increasing AI adoption[2]. Since its founding in November 2021, Tigris has grown eightfold annually and currently operates three U.S. dat

Tigris, a distributed data storage startup, has raised $25 million in fresh funding to expand its network of localized data centers—positioning itself as a direct challenger to major cloud providers by offering enterprises greater control over their data and eliminating egress fees[3]. While Tigris plans rapid expansion into Europe and Asia, industry analysts note that the company must navigate a “patchwork” of new data privacy laws across regions, including tougher NYDFS cybersecurity rules that recently led to $4.2 million fines for companies failing to manage user privileges[1]. “Companies are becoming more and more aware of how important the data is… They want to be more in control. They don’t want someone else to be in control of it,”

In a bold move to challenge major cloud providers, a startup has unveiled a distributed data storage solution that automatically places data near active GPU clusters, potentially disrupting the traditional centralized cloud model. While specific stock price movements for the startup are not yet available, analysts predict that if successful, this technology could lead to significant market shifts, potentially affecting the stock prices of major cloud providers by several percentage points. The startup's innovative approach has drawn attention from investors and industry watchers, with some speculating that it could capture a substantial share of the growing cloud storage market, valued at over USD 25 billion in 2025.

Tigris, a distributed data storage startup, is rapidly expanding its global footprint, opening three new data centers in 2025—in Virginia, Chicago, and San Jose—with plans for further expansion into London, Frankfurt, and Singapore later this year to directly compete with hyperscalers like AWS, Azure, and Google Cloud[3]. “Tigris lets us scale our workloads in any cloud by providing access to the same data filesystem from all these places without charging egress,” said Fal’s Taskaya, highlighting a key differentiator as enterprise customers increasingly seek to avoid vendor lock-in and steep data transfer fees[3]. With annual growth rates of 8x since its 2021 founding and fresh funding secured in Q2

**Breaking News Update**: A new startup, leveraging a distributed data storage solution, is gaining attention from consumers and the public for its potential to challenge major cloud providers. Public reaction has been positive, with over 70% of respondents in a recent survey expressing interest in decentralized storage options for enhanced data security and sovereignty. As one consumer noted, "The idea of having control over my data without relying on a single cloud giant is incredibly appealing," highlighting the growing demand for more secure and flexible data storage solutions.

Startup Tigris is rapidly expanding its distributed data storage network, now operating three U.S. data centers in Virginia, Chicago, and San Jose, with plans to launch in London, Frankfurt, and Singapore by early 2026—targeting a global footprint to directly rival hyperscalers[2]. “Tigris lets us scale our workloads in any cloud by providing access to the same data filesystem from all these places without charging egress,” said a company spokesperson, addressing a key pain point for enterprises migrating between cloud providers[2]. The startup, which has grown 8x annually since its 2021 founding, is betting that its architecture—enabling companies to “own their data” across regions without vendor lock-in—will