How Will NetApp's DataPelago Acquisition Impact AI?
According to NetApp, the acquisition expands its data infrastructure portfolio by embedding GPU-accelerated data processing directly into the storage layer.
On July 16, 2026, NetApp, the Intelligent Data Infrastructure company announced it has acquired DataPelago, a California-based AI data infrastructure company, in a deal aimed at embedding GPU-accelerated data processing directly into the storage layer. According to the company, the acquisition adds accelerated compute capabilities to its existing data management portfolio.
"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," said George Kurian, Chief Executive Officer at NetApp. He said the acquisition extends NetApp's ability to help customers understand and process data with the agility needed for competitive advantage.
The company said enterprises are increasingly finding that preparing, governing, and activating data quickly enough for AI production has become their primary constraint. DataPelago enables accelerated computing where data is created and stored, rather than requiring data to be moved to separate compute clusters, the company added.
What DataPelago Offers
DataPelago's core technology, called Nucleus, is a universal data processing engine that uses both CPUs and GPUs to process data at its storage location, the company said. As per the company, this approach reduces infrastructure costs by up to 80 percent and delivers performance up to 10 times faster than conventional methods.
The company also said the technology removes the need to copy data from operational systems into separate AI systems, which it described as the primary bottleneck in enterprise AI deployment.
"DataPelago is on a mission to eliminate the data processing bottlenecks that prevent AI innovation from reaching its full potential," said Rajan Goyal, Founder and Chief Executive Officer of DataPelago. "Joining NetApp gives us the opportunity to combine our breakthrough processing technology with the industry's best data infrastructure portfolio,” he added.
Syam Nair, Chief Product Officer at NetApp, said the Nucleus engine brings software-defined acceleration to the storage layer without requiring data movement.”This is true zero-copy activation,' Nair said, adding that NetApp manages more enterprise data across more environments than anyone in the industry.
Following the transaction, DataPelago will operate as a wholly owned subsidiary of NetApp. The acquisition follows recent NetApp partnerships with Cisco, Google Cloud, Red Hat, SK Telecom, and other companies. NetApp said the acquisition builds on its strategy of embedding intelligence directly into enterprise data infrastructure to support AI workloads at scale.
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Key Takeaways
- NetApp acquires DataPelago to integrate GPU-accelerated data processing into its storage infrastructure.
- The acquisition enhances data management capabilities, enabling faster AI data preparation for enterprises.
- DataPelago's technology reduces infrastructure costs by up to 80% while increasing processing performance significantly.
- Nucleus, DataPelago's core engine, processes data at storage locations, eliminating the need for separate compute clusters.
- This move addresses enterprises' primary constraints in preparing and activating data for AI applications.