Datadog offered nearly $4B for cloud security startup Upwind

· Tech · United States · Israel

Enterprise software firm Datadog recently offered to buy Israeli cloud cybersecurity startup Upwind Security for nearly $4 billion, according to a person with direct knowledge of the talks. Upwind has reportedly fielded takeover approaches from multiple bidders in recent months, suggesting a competitive process rather than a single suitor. The reported offer is the latest sign of intense interest in cloud security companies, as enterprises look to protect workloads spread across multiple clouds and as AI agents take on more automated tasks inside corporate systems. Neither company has confirmed a deal. If completed at that price, the acquisition would rank among the largest recent purchases of a private cybersecurity startup and would extend Datadog's move beyond monitoring into security.

Why it matters：The reported bid reflects a consolidation wave in cloud security, where buyers are paying premium prices for startups as AI agents and multi-cloud workloads expand the attack surface.

Key points

  • The offer was for nearly $4 billion, per a person with direct knowledge.
  • Upwind has received takeover interest from multiple bidders.
  • The deal has not been confirmed by either company.

Sources (original reporting)

More stories from this day