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Dear member Reader!

Datadog’s overarching theme was enabling autonomy across development, operations, and security, leveraging AI to address rising complexity and accelerate business outcomes. The unified platform integrates observability, security, analytics, and automation under one roof, breaking down silos and supporting AI workloads, legacy environments, and digital transformation. The company has over 1,000 integrations and ingests more than 1 trillion events per hour, and has almost 1 million monthly average users.

In just 10 years, Datadog developed and integrated more than 25 products on its platform. It has more than 32,700 total customers. There were 4,310 customers with an ARR of $100,000 or more. It has 603 customers with an ARR of $1 million or more.14 of the top 20 AI-native companies are Datadog customers. These customers are growing quickly as AI applications are going into production.

AI-native customers are growing and helping the company, and are not a risk. AI-native revenue represents only 11% of total revenue, still a minor portion, as the CEO confirmed that revenue growth from the non-AI-native customer base accelerated to 23% year-over-year in Q4. Their revenue from non-AI customers is still growing at a healthy rate.Security reached over 8,500 customers and $100M in ARR, but still represents a small share of wallet, and the management team indicates significant upside.

AI innovation and Differentiation:

Imagine the world of artificial intelligence as a vast, stormy ocean. Every company is racing to build bigger, smarter ships. But most are sailing blind and crashing into hidden icebergs of broken models, runaway costs, security nightmares, and “why-is-everything-on-fire” alerts.
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Then Datadog quietly draws a perfect triangle on the map… and suddenly everything changes.
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Datadog didn’t just build a faster ship. They built the only vessel that covers all three corners of the AI triangle — the complete, unbreakable strategy that turns chaos into confidence.
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​Corner 1: “AI for Datadog”
Datadog first turned AI inward. They created their own intelligent crew:

• Bits AI: the SRE agent that never sleeps, spotting problems before humans even notice.
• MCP servers: smart infrastructure that auto-heals and scales itself.

It’s like giving their ship a genius captain and a self-repairing hull.

Corner 2: “Datadog for AI”
Then they flipped the telescope outward.Now every other AI company can use Datadog to watch their ships in real time:

• LLM Observability (so you actually know what your chatbot is thinking)
• Data Observability (no more poisoned training data)
• GPU monitoring (stop burning money on idle graphics cards)
• AI Guard (built-in safety nets against hallucinations and attacks)

Suddenly, the stormy ocean feels… navigable.
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Corner 3: The Secret Weapon TOTO
​And right in the middle of the triangle sits the crown jewel:

TOTO, Datadog’s own observability model. Trained on more than 1 trillion real-world data points. Built for a shockingly tiny cost $750,000.
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Already downloaded over 9 million times on Hugging Face. It’s not just another model. It’s the strong performer on the observability benchmark, the brain that ties the entire triangle together.

The Result

While everyone else is still guessing, throwing money at problems, and praying their AI doesn’t explode… Datadog sits calmly at the center of the perfect triangle, covering every side of the AI journey with zero blind spots. They’re not just participating in the AI arms race.
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They’re winning it… with the lowest risk and the clearest view of the future. And the best part the triangle is already built. The ship is already sailing. And the ocean is finally starting to look a whole lot calmer.

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Conclusion:

Datadog's investor day 2026 painted a picture of a platform company in a strong competitive position, leveraging a proprietary AI flywheel, high retention rates and a vast untapped customer opportunity to sustain long-term growth and margin expansion.
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Happy investing,
Stockscurrent Team