Datadog reportedly offered nearly $4 billion for cloud-security startup Upwind

Datadog offered nearly $4 billion to buy Israeli cloud-security startup Upwind, The Information reported on Oct 22 [1]. Globes, citing that report, said Upwind turned the offer down in favor of completing a $300 million funding round at a $3.8 billion valuation [2]. Israeli outlet CTech reported later on Oct 22 that the offer was not made [3]. Neither company immediately responded to requests for comment [4].

Upwind, founded in 2022 by CEO Amiram Shachar, raised $250 million at a $1.5 billion valuation in January 2026 [3]. The Information reported that Upwind's annual recurring revenue topped $50 million, up from about $20 million at the end of 2025 [3]. The two companies held talks on a deal valued at about $1 billion in July 2025 that did not go ahead [4].

A purchase would be Datadog's largest, above its $220 million acquisition of analytics firm Eppo in May 2025 [4]. Upwind would add supply-chain security, AI and data security posture management, and container security to Datadog's existing cloud security tools [4]. Datadog shares were down 5.21% at $258.87 on the afternoon of Oct 22 [4]. Datadog reports third-quarter results before the US market opens on Nov 4 [5].