Datadog, a cloud-based observability platform company, is pursuing an acquisition of Israeli cloud security startup Upwind Security, The Information reported on Oct. 22 local time.

Datadog recently offered Upwind nearly $4 billion as acquisition terms, the report said. Upwind has received acquisition proposals from several companies over the past few months but has not accepted any, The Information said.

Upwind is raising $300 million at an enterprise value of about $3.8 billion. Datadog's offer is not significantly higher than the valuation Upwind is targeting.

Upwind provides software that monitors applications and AI agents running in the cloud. Its products also offer functions to detect signs of hacking or intrusion and respond automatically. Roku and Brazilian digital bank Nubank are among Upwind's customers.

Datadog is best known for observability software and has recently expanded into security. That has led to analysis that Upwind's real-time security functions would be a good fit.

Datadog also tried last year to acquire Upwind for about $1 billion, but the talks fizzled out, The Information said.

Upwind has since grown rapidly, with annual recurring revenue rising to more than $50 million from about $20 million by the end of 2025.