a16z-backed DATA moves to Sui and shuts down its own blockchain

DATA retires its blockchain for Sui

DATA, a blockchain (a digital record system shared across many computers) startup backed by Andreessen Horowitz's a16z crypto and formerly known as Story Protocol, is shutting down its own blockchain and moving to Sui after securing a $30 million investment from the Sui Foundation.

The move is part of a narrower focus for the company, which is now centered on tracking the origins and usage rights of data used to train artificial intelligence models.

From broad IP to AI training data

DATA originally planned to bring many types of intellectual property onchain, including music royalties, patents, and trademarks. But according to CEO Andrea Muttoni, the company found that established systems were already in place in those industries and large rights holders had little interest in permissionless licensing.

"We were trying to boil the ocean, and it was a very saturated and entrenched ocean," Muttoni told CoinDesk.

After raising $140 million and building its own blockchain, the company rebranded from Story Protocol to DATA Foundation in June to shift its attention to AI training data. It is now focusing more specifically on its product Trace, a registry that records where training data comes from, who contributed it, and what rights buyers have to use it.

Costs drive the shift to Sui

Running a blockchain comes with costs, including engineers, validators, audits, and infrastructure providers. With most of the company's work centered on Trace, DATA questioned whether it still needed to maintain its own blockchain.

The $30 million investment from the Sui Foundation allowed the company to move to Sui and focus on its protocol and product rather than maintaining its own network. Muttoni did not disclose how much of the original $140 million remains, but said existing investors, including a16z crypto, are still involved.

Sources

• CoinDesk