Sui Foundation will invest $30 million in DATA Network as the AI training data protocol moves to the Sui blockchain, bringing its Trace registry and rights-cleared data infrastructure into the Sui ecosystem.
Announced on October 12, 2026, the integration will also make Walrus the default storage layer for applications operated by DATA Foundation.
The project aims to help artificial intelligence developers source real-world training data with documented origins and usage rights. However, recording provenance and licensing information does not, by itself, establish that every file has valid permissions or that its use complies with applicable laws.
Under the agreement, DATA Network will operate natively on Sui, while its existing independent blockchain will be retired after the transition. The $DATA token will continue as the protocol’s token on Sui, with holders receiving a one-to-one migration and governance rights and economic terms at least equivalent to those under the current arrangement.
Trace Records 250 Million Contributions
At the center of the integration is Trace, an onchain registry launched by DATA Foundation in June 2026. The platform records the origin of AI training data contributions, the rights attached to them and payments to contributors.
According to Sui’s announcement, Trace has registered more than 250 million contributions and processes an average of over 3 million receipts daily.
Applications using Trace include Kled, which is onboarding more than 1.5 billion records for its human data marketplace, as well as Numo and Oto. These applications already license data to frontier AI laboratories and robotics companies.
The infrastructure is designed to support data that is difficult to obtain through conventional web scraping, including medical accounts, dashcam footage, industrial recordings and customer conversations. Such material can contain personal or regulated information, making consent and verifiable usage rights important for AI developers.
Walrus Adds Encrypted Data Storage
The integration will expand Trace’s existing provenance records by allowing the registry to hold encrypted, immutable copies of original data files through Walrus.
Currently, a Trace record establishes that a file was registered and when the registration occurred. With Walrus, the system is intended to provide a reference copy of the original file, allowing its integrity to be checked against the registered record and helping identify changes introduced during subsequent processing. Access controls will restrict the stored data to licensed buyers, according to Sui Foundation.
Sui’s transaction infrastructure is designed to process independent operations in parallel and settle transactions in under a second. Walrus provides the storage layer for large datasets, while Sui’s programmable object model allows datasets and their licenses to be managed onchain.
The combined infrastructure is intended to support large-scale data registration, licensing and verification as AI developers seek more reliable sources of training material.
The integration follows other AI infrastructure developments across the Sui ecosystem. On October 6, Mysten Labs announced a collaboration with Google Cloud to build an evidence layer for AI agents, adding to efforts to support verifiable AI applications.
While that initiative focuses on AI agent evidence, the DATA Network integration centers on verifying training data origins, usage rights and integrity.
DATA Network Moves to Sui
As part of the transition, DATA Network will become a protocol running natively on Sui rather than operating its own blockchain. The existing network will continue operating until the upgrade is completed.
The $DATA token will transfer to Sui at a one-to-one ratio. Locked and vesting positions will carry over unchanged, and holders will retain governance rights and economic terms that are at least equivalent to their current arrangements.
Sui Foundation said a detailed migration timeline and tokenholder transition plan would be published before the upgrade.
The $30 million investment also establishes Sui Foundation as the network’s largest institutional stakeholder, alongside the continuing holdings of PIP Labs and DATA Foundation. SY Lee, chairman of Poseidon and CEO of PIP Labs, will join Sui Foundation as a strategic adviser.
AI Data Provenance Matters
The agreement comes as AI developers face increasing legal and regulatory scrutiny over the material used to train their models. The European Union’s AI Act and ongoing litigation over training data have added pressure on companies to establish where datasets originated and whether they have the necessary rights to use them.
By combining Trace’s registry with Walrus storage and Sui’s blockchain infrastructure, the project aims to provide a system for recording data origins, managing licenses and verifying original files.
The next major steps are the completion of the protocol upgrade and publication of the token migration timeline. Until then, DATA Network will continue operating on its existing chain.
Also Read: Samsung Brings USDC to Galaxy Wallet With Coinbase, Solana & Sui
