Did Datadog really offer $4 billion for Israeli cyber startup Upwind?
The Israeli cloud security startup announced a $300 million funding round at a $3.8 billion valuation last month.
Israeli cloud security startup Upwind has emerged as a potential acquisition target as it rapidly increases its valuation and expands its business. But while a report on Thursday described a nearly $4 billion offer from software company Datadog, CTech has learned that the reported offer was not made.
The report by The Information said Datadog had approached Upwind about an acquisition at a price close to the startup’s reported $3.8 billion valuation in a funding round announced last month. It also reported that Upwind had received other acquisition approaches but had not accepted them.
Founded in 2022 by Amiram Shachar, Upwind develops cloud security software that helps organizations monitor applications and infrastructure, identify risks and respond to attacks. Its customers include Roku and Brazilian digital bank Nubank.
The company has attracted substantial investor interest. In January 2026, it raised $250 million at a valuation of $1.5 billion. It is now finalizing a further $300 million funding round at a valuation of $3.8 billion, more than doubling its previous valuation in less than a year.
The Information also reported that Upwind’s annual recurring revenue had exceeded $50 million, up from approximately $20 million at the end of 2025. The company’s growth comes as businesses face mounting challenges securing cloud environments and the AI agents increasingly operating within them.
Upwind has been expanding its focus on AI security. In September 2026, it acquired Aegis in a stock deal reportedly worth tens of millions of dollars and established Upwind AI Labs to develop its work in securing AI systems and agents.
Datadog, with a market capitalization of around $90 billion, provides monitoring and security tools for businesses’ software and cloud infrastructure. An acquisition of Upwind would have given it a larger position in cloud security, an area in which demand is growing alongside the adoption of cloud computing and AI.
