Datadog Acquires Adaptive ML to Advance AI Research

Datadog Inc. acquired Adaptive ML on July 1, 2026, to accelerate its development of world models and agentic LLM post-training for observability. The acquired firm will be integrated into the Datadog AI Research division to strengthen the company's technical capabilities in artificial intelligence.

Financial analysts responded positively to the acquisition and broader portfolio updates. On July 2, Benchmark analyst Yi Fu Lee raised the price target for Datadog to $330 from $260, maintaining a Buy rating based on positive checks within the customer and partner ecosystems.

Similarly, Citi increased its price target for the company to $270 from $218. The firm noted that Datadog's recent portfolio updates have strengthened its competitive moat in the observability and security market.