Datadog, a leading US-based cloud monitoring and security platform, is reportedly in advanced talks to acquire Israeli Cybersecurity firm Upwind Security in a deal valued at up to $1 billion. While official confirmation from either party is still pending, sources familiar with the matter revealed details of the ongoing negotiation to The Times of Israel.

The acquisition—if finalized—would mark a major strategic leap for Datadog, enabling it to deepen its offerings in cloud-native security at a time when businesses are rapidly shifting to hybrid and multi-cloud environments. Analysts say the move aligns with broader industry trends of established firms snapping up innovative startups with advanced threat detection capabilities.

Upwind’s Meteoric Rise and Cutting-Edge Platform

Founded in 2022 by Israeli Cybersecurity tech entrepreneurs Amiram Shachar, Liran Polak, Lavi Ferdman, and Tal Zuri, Upwind Security has quickly become one of the most closely watched players in cloud-native cybersecurity. The founding team previously made headlines for selling Spot.io to NetApp for $450 million in 2020.

Headquartered in San Francisco with an R&D center in Tel Aviv, Upwind delivers a real-time cloud security platform that actively protects software environments by monitoring live runtime threats, filtering out false alerts, and prioritizing vulnerabilities that matter. Their approach has been lauded for reducing alert fatigue and helping security teams focus on critical, actionable threats.

The company’s name—Upwind—was inspired by Shachar’s passion for wing foiling, a detail that reflects the founders’ blend of vision and agility in fast-paced tech markets.

Strategic Funding, Global Expansion, and Market Impact

In December 2024, Upwind secured $100 million in funding, bringing its valuation to around $900 million just two years after its inception. The funds were earmarked for global expansion, team growth, and strengthening its presence across Israel, the US, the UK, and Iceland. The team is expected to grow to over 300 employees by the end of 2025.

For Datadog, which specializes in application performance monitoring, infrastructure observability, and analytics, Upwind offers an opportunity to expand into proactive cloud-native security—a fast-growing demand area. Integrating Upwind’s runtime defense tools could significantly bolster Datadog’s appeal to enterprise customers seeking an all-in-one monitoring and security solution.

If the acquisition moves forward, it would not only represent a major win for Israeli Cybersecurity thriving cybersecurity sector but also reflect a larger industry shift: cloud observability and runtime protection are becoming inseparable as threats grow more complex and dynamic.

Upwind’s rapid ascent and potential $1 billion acquisition by Datadog signals a powerful convergence of innovation and market opportunity in the cybersecurity space. With its strong leadership, real-time threat intelligence, and cloud-native capabilities, Upwind is positioned to reshape how enterprise security is delivered. For Datadog, the deal is more than a buyout—it’s a strategic investment into the future of integrated cloud security.