NetApp snaps up DataPelago to bolster AI data infrastructure portfolio

The acquisition brings GPU-accelerated data processing into NetApp's storage layer to help customers speed up AI workloads

NetApp logo pictured on a wall at the company's headquarters in San Jose, California.
(Image credit: Getty Images)

NetApp has announced the acquisition of California-based AI data infrastructure specialist DataPelago, in a move the company said will improve performance for AI and analytics workloads.

The deal will see DataPelago’s technology integrated into NetApp’s portfolio, enabling GPU-accelerated processing directly within the storage layer rather than requiring data to be moved into separate compute environments.

According to NetApp, the move will help customers reduce their infrastructure costs while improving performance for AI and analytics workloads by processing data at its source.

In an announcement, NetApp CEO George Kurian said the acquisition strengthens the company’s aim of giving customers “full command” of their data.

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"As AI models and the chips that power them get ever more effective, enterprises need data infrastructure that is just as intelligent and powerful to harness the potential of their data," he commented.

"With DataPelago, we are extending our ability to help customers understand and process their data with the agility required to unleash competitive advantage.”

Founded in 2021, California-based DataPelago develops AI data infrastructure designed to accelerate data processing for AI and analytics workloads. Its technology focuses on reducing the complexity and cost of preparing enterprise data for AI by enabling processing closer to where data is stored.

At the heart of DataPelago’s offering lies its Nucleus engine, which uses GPU and CPU acceleration to process data directly where it resides.

According to the company, the technology eliminates the need to copy enterprise data into separate AI environments, reducing infrastructure costs by up to 80% while delivering performance improvements of up to ten times compared with conventional approaches.

By embedding the technology into its storage platform, NetApp said customers will be able to prepare, govern, and activate enterprise data for AI without moving it between environments, helping to remove one of the biggest bottlenecks facing AI deployments.

"NetApp manages more enterprise data across more environments than anyone in the industry," said Syam Nair, Chief Product Officer at NetApp.

“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."

Upon completion of the acquisition, DataPelago will operate as a wholly owned subsidiary of NetApp.

Commenting on the acquisition, DataPelago founder and CEO Rajan Goyal said joining NetApp would allow the company to bring its technology to a wider enterprise customer base.

"Joining NetApp gives us the opportunity to combine our breakthrough processing technology with the industry's best data infrastructure portfolio,” he explained.

“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."

Financial terms of the acquisition were not disclosed.

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Daniel Todd

Dan is a freelance writer and regular contributor to ChannelPro, covering the latest news stories across the IT, technology, and channel landscapes. Topics regularly cover cloud technologies, cyber security, software and operating system guides, and the latest mergers and acquisitions.

A journalism graduate from Leeds Beckett University, he combines a passion for the written word with a keen interest in the latest technology and its influence in an increasingly connected world.

He started writing for ChannelPro back in 2016, focusing on a mixture of news and technology guides, before becoming a regular contributor to ITPro. Elsewhere, he has previously written news and features across a range of other topics, including sport, music, and general news.