Log in Sign up
Business Formic Raises $50 Million to Move Robots-as-a-Service From Single Tasks to General-Purpose Machines Security Datadog Offers Nearly $4 Billion for Upwind, a 5 Percent Premium Over the Startup's Own Private Round Productivity Canva Trained Its First Image Model on Design Templates Instead of Photos, and Says the Text Finally Reads News Rivian Buys a 15-Person UK World-Model Startup to Simulate the Edge Cases Its Fleet Has Never Filmed Business Ex-OpenAI Science Chief Kevin Weil Raises 215 Million for Robot Chemistry Labs at an 865 Million Valuation AI Agents Google Gives Every AI Agent Its Own microVM: 200,000 Agents, 500 Wake-Ups a Second ChatGPT Uber Puts All 30,000 Employees on ChatGPT Work After a Pilot Where 80 Percent Were Not Engineers News Microsoft Says Its Diagnostic Orchestrator Beats Doctors 83 to 36 Percent on Hard Cases, With a Catch Business Formic Raises $50 Million to Move Robots-as-a-Service From Single Tasks to General-Purpose Machines Security Datadog Offers Nearly $4 Billion for Upwind, a 5 Percent Premium Over the Startup's Own Private Round Productivity Canva Trained Its First Image Model on Design Templates Instead of Photos, and Says the Text Finally Reads News Rivian Buys a 15-Person UK World-Model Startup to Simulate the Edge Cases Its Fleet Has Never Filmed Business Ex-OpenAI Science Chief Kevin Weil Raises 215 Million for Robot Chemistry Labs at an 865 Million Valuation AI Agents Google Gives Every AI Agent Its Own microVM: 200,000 Agents, 500 Wake-Ups a Second ChatGPT Uber Puts All 30,000 Employees on ChatGPT Work After a Pilot Where 80 Percent Were Not Engineers News Microsoft Says Its Diagnostic Orchestrator Beats Doctors 83 to 36 Percent on Hard Cases, With a Catch

Datadog Offers Nearly $4 Billion for Upwind, a 5 Percent Premium Over the Startup's Own Private Round

Security · By: AIReport Admin · 2 hours ago · 👁 14
Datadog Offers Nearly $4 Billion for Upwind, a 5 Percent Premium Over the Startup's Own Private Round

Datadog has offered about $4 billion for Upwind, the Israeli cloud security startup, according to The Information. Upwind has not accepted and is closing a $300 million round at roughly $3.8 billion, months after a $250 million Series B at $1.5 billion. Datadog shares fell 5.62 percent to $257.75 on the report, leaving a market cap near $92.6 billion.

Datadog has offered roughly $4 billion for Upwind, the Israeli cloud security startup behind a runtime-first cloud protection platform, according to an exclusive report by The Information. Upwind has not accepted the proposal, and both sides stayed quiet: Upwind representatives declined to comment and Datadog did not immediately respond to requests for comment. Datadog shares closed down 5.62 percent at $257.75 on the day of the report, valuing the company at about $92.6 billion.

The price sits just above Upwind's own private market mark. The startup is concurrently closing a $300 million funding round at roughly $3.8 billion, per The Information, which means the takeover bid would carry only about a 5 percent premium. That is an unusually thin spread, and it reflects how quickly Upwind's valuation has moved: earlier this year it raised a $250 million Series B at a $1.5 billion valuation.

Upwind was founded by CEO Amiram Shachar, CTO Tal Zur and growth chief Lavi Ferdman, and sits in the crowded cloud-native application protection platform, or CNAPP, category. Its pitch is runtime visibility built on eBPF, which watches running workloads at the kernel level and, by the company's account, filters out 95 percent of alert noise by determining which vulnerabilities are actually exploitable in production.

Datadog's interest fits the moment. Advanced AI models have been uncovering serious vulnerabilities in widely used software infrastructure at a growing clip, and AI agents that act on their own have added a new class of workloads that security teams do not yet know how to watch. Upwind specifically markets monitoring for cloud-running applications, including emerging AI agents. Security stocks have re-rated accordingly, with CrowdStrike, Palo Alto Networks and Okta all up between 90 and 130 percent this year.

For Datadog, which reported quarterly revenue of $1.12 billion, up 35.6 percent, security is the expansion lane next to observability, and buying a runtime security layer would put it in direct competition with the dedicated security vendors it currently partners with. Whether that justifies a $4 billion outlay is the question the 5.62 percent share drop suggests investors want answered.

If the deal closes, it would rank among the largest Israeli cybersecurity exits of 2026, and it would land the way many consolidation deals now do: a public buyer paying a near-zero premium over the private round because the private market already did the repricing. The open question is whether Upwind takes the offer or waits out a round at a higher number with the same investors bidding.

Comments (0)

Log in to join the discussion

Log In

No comments yet