DataDirect Networks (DDN), the California-based data storage company, is exploring a new funding round that would bring in strategic investors, according to a report from Bloomberg. The move comes as the company seeks to capitalise on the explosive growth in artificial intelligence workloads, which require vast amounts of high-speed data storage and processing power.
DDN has long been a key player in the high-performance computing (HPC) and AI storage market, supplying systems to research institutions, cloud providers and enterprises. Its technology underpins some of the world's fastest supercomputers, and the company has been expanding its presence in the UK and Europe, where AI adoption is accelerating across sectors such as healthcare, finance and defence.
The potential funding round, details of which remain private, is expected to value DDN at several billion dollars, according to people familiar with the matter. Strategic investors could include technology firms or infrastructure funds looking to gain exposure to the AI supply chain, which has become a focus for UK investors amid the government's push to make Britain an AI superpower.
For UK pension funds and retail investors, the development underscores the growing importance of data infrastructure companies in the AI ecosystem. While DDN is not publicly listed, its funding activity is seen as a bellwether for the sector, which includes listed peers such as Pure Storage and NetApp. Analysts note that increased investment in data storage providers often signals broader confidence in AI-driven demand.
The news comes as UK markets digest a mixed session, with the FTSE 100 edging up 0.3% to 7,683 points, supported by gains in technology and defence stocks. The FTSE 250 added 0.2% to 19,104. Key movers included BAE Systems, up 1.1% on defence spending optimism, and Darktrace, which rose 2.3% amid continued interest in cybersecurity and AI-related plays. Sterling was flat against the dollar at $1.27.