NetApp expands storage-layer AI processing with DataPelago deal

NetApp acquired AI data infrastructure startup DataPelago, which will operate as a wholly owned subsidiary. DataPelago's Nucleus engine processes data at the storage layer, reducing infrastructure costs by up to 80% and eliminating the need to copy data to external compute clusters. NetApp CEO George Kurian said the deal extends the company's ability to help customers process data with agility for AI deployment.

NetApp has snapped up AI data infrastructure vendor DataPelago. No financial details were disclosed, though the California-based company will operate as a wholly owned subsidiary of NetApp. Its Nucleus universal data processing engine is capable of processing data wherever it resides, rather than moving it to external compute clusters. NetApp said DataPelago’s tech is capable of reducing infrastructure costs by up to 80%, while also reducing the need for customers to copy their data from their operational systems to AI systems, eliminating a common headache for enterprise deployments. “DataPelago's Nucleus engine brings software-defined acceleration directly to the storage layer, processing data across CPUs and GPUs so enterprises can prepare, govern, and activate their data for AI without moving it,” said NetApp CPO Syam Nair. “NetApp manages more enterprise data across more environments than anyone in the industry. The next phase of AI will be won by those who make that data work at the source, and the DataPelago team brings the technical depth and velocity to get us there faster.” DataPelago was founded in 2021 by former Fungible CTO Rajan Goyal. Formed to take advantage of “ data processing limitations https://www.datapelago.ai/resources/why-i-founded-datapelago ” and help businesses get the best out of the “tsunami” of unstructured data, DataPelago has raised $55 million to date per Crunchbase https://www.crunchbase.com/organization/datapelago financials figures. The likes of Qualcomm Ventures, Silicon Valley Bank, and Nautilus Venture Partners count among its backers, with the startup’s offering taking on proverbial giants in the form of Nvidia’s cuDF framework. Where Nvidia’s offering is GPU-accelerated, DataPelago touts itself as a heterogeneous hardware alternative. “Joining NetApp gives us the opportunity to combine our breakthrough processing technology with the industry's best data infrastructure portfolio,” Goyal said in a statement. “Enterprises have invested billions in GPUs and AI models, but their data remains fragmented, leaving valuable computing resources to sit idle rather than putting these investments to work. Together, we’re positioned to help customers simplify and accelerate AI deployment at scale.” “With DataPelago, we are extending our ability to help customers understand and process their data with the agility required to unleash competitive advantage,” George Kurian, NetApp's CEO, added.