The Sui Foundation will invest $30 million in DATA Network under a strategic partnership that brings the artificial intelligence data protocol into the Sui blockchain ecosystem. As part of the agreement, DATA Network will retire its independent blockchain and fold its operations into Sui's infrastructure.

The migration is designed to strengthen the systems used to collect, verify, license, and store data for AI training. Once the transition is complete, DATA Network will operate as a native protocol on Sui, while Walrus — a decentralized data storage platform within the ecosystem — will serve as the default storage layer for applications run by DATA Foundation.

With the investment, the Sui Foundation becomes DATA Network's largest institutional holder, joining existing stakeholders PIP Labs and DATA Foundation.

DATA Network Prepares for Blockchain Migration

Under the terms of the deal, DATA Network will discontinue its standalone blockchain after completing the move to Sui. The existing DATA token will migrate to the Sui network at a one-to-one ratio, preserving the token supply conversion between the two networks.

The switch will not happen immediately. DATA Network will continue running on its current infrastructure until the transition is finished, and the foundation plans to publish a detailed migration timeline and token-holder transition plan ahead of the upgrade. For token holders, those documents will set out the mechanics and timing of the one-to-one conversion.

The arrangement reflects a strategic shift toward building on established blockchain infrastructure rather than maintaining a separate network. By joining Sui, DATA Network aims to expand its capabilities while connecting its AI data services with complementary storage technology.

Trace Registry Targets AI Training Data

DATA Foundation has increasingly concentrated on AI training data, moving away from the broader intellectual property infrastructure strategy it pursued earlier in 2026.

Its Trace registry records the origins of AI training data, documents associated usage rights, and facilitates payments to contributors. The system is intended to help AI developers identify datasets they can use with greater confidence about ownership, permissions, and provenance. Provenance records of this kind speak to a core practical concern in AI development: establishing whether a given dataset may be used, and on what terms, before it enters a training pipeline.

According to the foundation, Trace has logged more than 250 million contributions since launching in June 2026 and processes an average of more than 3 million receipts daily, underscoring the scale of its data registration activity.

Walrus will provide the storage infrastructure for DATA Foundation applications. The integration is meant to reinforce data verification by linking provenance records with stored files, helping developers establish where training data originated and whether its use is authorized.

The partnership positions Sui to attract additional AI-focused activity while giving DATA Network access to a broader technology stack. Its longer-term impact will depend on the migration's execution, continued adoption of Trace, and demand from AI developers seeking verifiable, rights-cleared training data.