Datadog Acquires Adaptive ML to Bolster AI Operations and Research

Datadog has acquired Adaptive ML, a startup specializing in reinforcement learning operations. The move will integrate Adaptive ML's team and technology directly into Datadog's AI research division.

The acquisition, announced June 30, had no disclosed price. Adaptive ML's platform has processed trillions of tokens in enterprise deployments. It uses reinforcement learning to continuously optimize large language models and AI agents after deployment, handling tasks like synthetic data generation and A/B testing.

Adaptive ML was co-founded by CEO Julien Launay, who previously worked at LightOn and Hugging Face. The startup raised $20 million in seed funding led by Index Ventures.

This is Datadog's third AI-focused acquisition in about 14 months. It follows the purchases of Metaplane for data observability and Eppo for experimentation tools. The strategy indicates Datadog is building a comprehensive platform to not only monitor but also actively improve enterprise AI systems.

Investors note the undisclosed deal terms suggest a meaningful valuation for Adaptive ML given its $20 million seed funding and proven enterprise scale.