Startup DATA Migrates to Sui Network After $30 Million Funding Round

The DATA Foundation, formerly known as Story Protocol, has decided to shut down its proprietary blockchain to migrate to the Sui network. This move follows a $30 million investment from the foundation behind the Sui ecosystem. The startup, backed by a16z crypto, is now shifting its operations to focus on the data market for artificial intelligence.

The company's original project, founded in 2022, aimed to manage intellectual property rights such as music and patents. After raising $140 million, the team faced challenges in established sectors and encountered resistance from major rights holders. CEO Andrea Muttoni admitted that the attempt to cover various types of intellectual property was overly ambitious.

The current strategy focuses exclusively on the Trace product. This tool records the origin, contributors, and usage rights of data applied in training AI models. The company concluded that maintaining its own blockchain led to high costs related to infrastructure, validators, and technical audits.

By migrating to Sui, the organization intends to optimize resources and prioritize protocol development. Initial investors, including a16z, remain involved in the business during this transition. The change marks a new phase for the company as it seeks greater operational efficiency in a specific niche of the tech sector.