Blackstone is investing $300 million in DDN, marking the company’s first external funding. This investment values the Chatsworth, California-based business at $5 billion.
Founded in 1998 by computer scientists Alex Bouzari and Paul Bloch, DDN specializes in providing computing equipment and software. Its tools help organizations manage and analyze data during AI model training and deployment.
Initially, DDN focused on supporting data management for government agencies and research organizations. It played a key role in projects like drug development simulations and NASA missions. Today, its focus has expanded as more companies explore AI-driven solutions.
About DDN
DDN’s platform makes AI more cost-effective, says CEO Alex Bouzari. With Blackstone’s $300 million investment, DDN aims to significantly grow its business-customer base.
The company’s products power some of the largest AI infrastructure projects. One example is the Colossus supercomputer in Memphis, Tennessee, developed by Elon Musk’s xAI. This project plans to scale up to include 200,000 of Nvidia’s advanced AI chips.
Despite working mostly behind the scenes, DDN remains a strong competitor in the AI space. Industry insiders suggest the company could pursue an initial public offering within the next few years.
The Context
Blackstone is capitalizing on the AI boom by investing in data centers and companies that support chip makers. In 2021, it acquired data-center operator QTS, and in 2023, it partnered with Digital Realty to develop $7 billion worth of data centers. In September, Blackstone announced a $16 billion deal to purchase Asian data-center operator AirTrunk.
The firm has also supported CoreWeave, an AI chip owner, through two multibillion-dollar debt-financing rounds. In these deals, the AI chips served as collateral for the loans, showcasing Blackstone’s innovative approach to AI investments.
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