Datadog Reportedly Weighs $4B Acquisition of Cloud Security Firm Upwind

Summary
The Information reported that Datadog may buy cloud security firm Upwind for $4 billion. The companies did not immediately comment; Upwind could instead pursue a reported $300 million funding round.
Key points
- The Information reported that Datadog is considering a $4 billion acquisition of Upwind; neither company immediately responded to ISMG's request for comment.
- Bloomberg previously reported that Upwind could raise $300 million at a $3.8 billion valuation, up from $1.5 billion in January.
- Datadog and Upwind reportedly held advanced acquisition talks in July 2025 for about $1 billion, but the deal did not materialize.
- Datadog offers cloud security, SIEM, vulnerability management, and threat detection capabilities.
- Upwind could add supply-chain security, AI and data security posture management, attack path analysis, container security, and dynamic application security testing to Datadog's offerings.
Article Details
- Event Type
- The Information reported that Datadog is considering a $4 billion acquisition of Upwind; the companies did not immediately comment, and no deal was confirmed.
- Impact
- A deal would be Datadog's largest acquisition, according to the article. Datadog and Upwind have overlapping capabilities in cloud security posture management, vulnerability management, API security, and incident response; Upwind could add supply chain security, AI and data security posture management, attack path analysis, container security, and dynamic application security testing.
People
Vendors
DatadogThis could be achieved through a $4 billion sale to New York-based observability and security platform Datadog, The Information reported Thursday. Neither Datadog nor Upwind immediately responded to ISMG requests forUpwindLike many high-flying cybersecurity startups, rising cloud security star Upwind finds itself at a crossroads.
