SAP, Progress and NetApp Race for AI Data Layer as Inference Spending Hits $23.3 Billion
SAP, Progress, and NetApp are acquiring companies to enhance their AI data infrastructure. SAP acquired Dremio for real-time analytics, Progress plans to buy Domo's AI assets for $400M, and NetApp acquired DataPelago for GPU-accelerated data processing. Gartner forecasts AI-optimized infrastructure spending to reach $42.3B in 2026, with inference spending at $23.3B. Data quality and availability are cited as major barriers to enterprise AI adoption.
How this was made
The 30-second read
Why it matters
These acquisitions could reshape the competitive landscape for AI‑ready data services.
Market read
M&A activity signals heightened investor focus on AI data infrastructure, potentially influencing sector valuations.
What to watch
Integration risk and potential regulatory scrutiny of data‑centric AI assets.
Background
The article discusses a wave of M&A activity as enterprise AI shifts toward data‑layer solutions.
Ticker impact
SAP completed its acquisition of Dremio on July 6, 2026, adding AI‑ready data federation technology.
upside pressure if integration succeeds
Large deal expands SAP's data capabilities, likely viewed favorably by investors.
Progress announced a $400 million cash deal to acquire Domo’s AI and data platform assets.
moderate upside if market sees strategic fit
Significant cash outlay signals confidence in AI data market.
NetApp completed its acquisition of DataPelago on July 16, 2026, adding GPU‑accelerated data processing technology.
potential upside as AI inference demand grows
Acquisition aligns with rising AI inference spending.
Domo’s AI and data platform assets are being sold to Progress for $400 million.
limited impact on remaining shareholders
Target is being acquired; price effect depends on deal terms.
Market effects
Accelerates competition in enterprise AI data infrastructure across ERP, storage, and integration vendors.
Primarily U.S. enterprise software and cloud storage markets.
Highlights growing global AI inference spend, affecting worldwide data‑center investment.
Counterpoint
Deal premiums may be excessive if AI inference growth slows, risking overvaluation.
Key entities
- AcquirerSAP
Enterprise software giant expanding AI data capabilities.
- AcquirerProgress Software
Software vendor buying Domo's AI assets.
- AcquirerNetApp
Data storage company adding AI processing tech.
- TargetDomo
Provider of AI and data platform assets.
