The deal centers on DataPelago’s core software, Nucleus, which distributes computing power across CPUs and GPUs. By processing data locally rather than forcing it through external compute clusters, the technology significantly reduces infrastructure overhead and accelerates AI workflows. This approach addresses a critical friction point for companies struggling to scale their internal AI operations.

DataPelago will function as a wholly owned subsidiary of NetApp moving forward. While the financial terms of the transaction remain private, the move signals a strategic push by NetApp to evolve beyond traditional storage and position itself as a central player in the AI data pipeline.