DDN's AI Data-Storage Business Surges as Demand for Computing Infrastructure Soars

Alex Bouzari's DataDirect Networks (DDN) has managed data storage for some of the world's fastest supercomputers since 1998.

High-performance data storage systems support the massive computing workloads required by artificial intelligence applications. [Photo: DDN]

Over the years, Bouzari and co-founder Paul Bloch built the largely bootstrapped company into an operation generating approximately $300 million a year, Forbes Daily reported.

For years, DDN's growth was limited by the relatively small number of laboratories operating advanced supercomputers.

Then came Nvidia. In 2016, the chipmaker began linking its graphics processing units (GPUs) to create powerful systems capable of performing billions of parallel calculations for artificial intelligence.

Nvidia's teams encountered a problem familiar to researchers running traditional supercomputers built by companies such as IBM and Cray: Although the chips could process data extremely quickly, supplying them with the right data at the right time remained a major challenge.

With Nvidia among its customers, DDN's business began accelerating as demand for AI computing infrastructure surged.

DDN's revenue was approximately $400 million in 2024 and reached $500 million a year later, according to the report.

The company is on track to reach $1 billion in annual revenue in 2026, driven in part by contracts with companies including Elon Musk's xAI and with governments developing AI supercomputers.