Datadog Bids Nearly $4B for Upwind, Just Over $3.8B Round

Datadog has offered close to $4 billion for Upwind, an Israeli cloud security startup, and Upwind has not taken it, The Information reported.

The reason sits on the other side of the ledger. Upwind is closing a $300 million funding round at approximately $3.8 billion, which leaves Datadog's bid barely above what the private market is already paying. Globes reported that the company "received the offer from Datadog, but decided on a fund-raising round instead."

Upwind's platform is built to monitor cloud-running applications, including AI agents, and to automatically detect and respond to breaches. That drops it straight into the problem enterprise buyers are currently trying to solve: putting observability and incident response around agent traffic alongside human and service workloads. Datadog, the dominant monitoring vendor, has been pushing further into security, and the two sides are not new to each other. An earlier round of talks at a smaller price was reported months ago and did not close.

Datadog shares slipped on the news. The buyer's problem is arithmetic. When a private round has already set the number, an acquisition offer has to clear it by enough to make founders prefer an exit to another year of running their own company. On these figures it did not.

For context, this lands in a stretch where enterprise cloud-security positioning around AI-agent traffic has been running hot across our cybersecurity coverage.