Datadog IncAcquisition of Adaptive ML to accelerate AI research for observability.

Datadog announced the acquisition of Adaptive ML on July 1, 2026, which will join Datadog AI Research to accelerate work on world models and agentic LLM post-training for observability. The next day, Benchmark analyst Yi Fu Lee raised the firm's price target on Datadog to a Street-high $330 from $260, maintaining a Buy rating, citing excellent customer and partner ecosystem checks and strong technology product-led execution. Last month, Citi also raised its price target to $270 from $218, keeping a Buy rating, and noted that portfolio updates widen Datadog's competitive moat with positive channel checks supporting the bull case becoming the base case.
Datadog IncAcquisition of Adaptive ML to accelerate AI research for observability.
Citigroup Inc.Adaptive ML is the acquired company, a positive outcome for its stakeholders.