Datadog Expands AI Strategy With Adaptive ML Acquisition

The integration of Adaptive ML into the Datadog AI Research team aims to accelerate the development of custom models and agents. Julien Launay, chief executive of Adaptive, noted that the merger provides the necessary infrastructure to scale their production capabilities under the umbrella of a major cloud-based analytics provider.

This transaction follows a period of significant capital allocation by Datadog, which has directed over $1 billion into research and development. The company is currently scaling its own suite of AI-driven tools, including the Bits series—comprising investigation, code, and security analysts—alongside research projects like Toto 2.0. By bringing Adaptive ML in-house, Datadog intends to streamline the lifecycle of specialized AI agents for its enterprise user base.