Acquires DataPelago to Accelerate AI Data Workloads

TLDR

• NetApp acquires DataPelago to expand enterprise AI data capabilities
• DataPelago adds zero-copy processing for faster AI data activation
• Nucleus engine processes enterprise data directly at the storage layer
• Acquisition reduces AI infrastructure costs and boosts processing speed
• Deal strengthens NetApp’s intelligent data infrastructure strategy

NetApp, Inc. (NTAP) shares fell 2.11% to $158.68 after the company announced its acquisition of AI infrastructure firm DataPelago. The transaction expands NetApp’s enterprise data platform with technology designed to accelerate AI and analytics workloads. The deal strengthens the company’s strategy to process enterprise data directly at the storage layer.

NetApp, Inc., NTAP

NetApp expands AI infrastructure with DataPelago acquisition

NetApp acquired California-based DataPelago to strengthen its intelligent data infrastructure portfolio. The acquisition adds technology that removes data processing bottlenecks for AI and analytics workloads. Consequently, NetApp expands its ability to activate enterprise data without creating additional data copies.

DataPelago developed Nucleus, a universal data processing engine for enterprise environments. The platform uses CPUs and GPUs together to process information where organizations already store their data. As a result, businesses can reduce unnecessary data movement before running AI applications.

The combined platform supports zero-copy data activation across enterprise environments. Therefore, organizations can prepare, govern, and process information without transferring it into separate AI systems. NetApp expects the integration to improve efficiency while simplifying enterprise AI deployment.

Nucleus technology targets faster enterprise AI processing

The Nucleus engine places accelerated computing directly inside the storage layer instead of external compute clusters. This approach allows enterprises to process data closer to its original location. The architecture reduces delays caused by constant data transfers.

According to NetApp, the technology can lower infrastructure costs by as much as 80%. The platform can also deliver processing speeds that reach ten times conventional methods. The design helps organizations use existing GPU resources more efficiently across demanding workloads.

Enterprise customers across multiple industries already use the technology for large-scale data processing. The platform supports analytics and AI applications while improving infrastructure performance. Organizations can complete complex processing tasks with fewer infrastructure requirements.

Acquisition supports NetApp’s broader enterprise AI strategy

The acquisition continues NetApp’s broader expansion across enterprise AI and intelligent data infrastructure. The company has recently expanded partnerships with Cisco, Google Cloud, Red Hat and SK Telecom. The latest transaction adds another capability to its growing enterprise portfolio.

Following the transaction, DataPelago will operate as a wholly owned subsidiary of NetApp. The integration allows both companies to combine storage infrastructure with accelerated data processing technology. Moreover, the combined platform aims to improve enterprise data management across hybrid environments.

The acquisition reflects increasing demand for infrastructure that supports production-scale AI deployments. Enterprises continue investing in AI hardware, yet data preparation remains a major operational challenge. Consequently, NetApp positions its expanded platform to help organizations process enterprise data faster while improving operational efficiency.