Datadog launches new security tools for AI applications

Published 10/06/2025, 21:14
Datadog launches new security tools for AI applications

NEW YORK - Datadog, Inc. (NASDAQ:DDOG), a cloud monitoring powerhouse with a market capitalization of $41.34 billion and impressive revenue growth of 25.54% over the last twelve months, announced on Tuesday new security capabilities designed to protect AI environments from development to production, according to a company press release. According to InvestingPro analysis, the stock is currently trading above its Fair Value.

The cloud monitoring firm, maintaining robust gross profit margins of 80.15% and a strong financial health score, has introduced Code Security, now generally available, which helps developers detect vulnerabilities in custom code and open-source libraries while providing AI-powered remediation guidance.

Datadog also released LLM Observability, which monitors AI model integrity and performs toxicity checks on prompts and responses. The company’s Cloud Security solution now offers compliance with AI security standards like the NIST AI framework.

To address runtime threats, Datadog unveiled the Bits AI Security Analyst, an AI agent integrated into its Cloud SIEM platform that autonomously triages security signals and investigates potential threats. Additionally, new LLM Isolation capabilities in Workload Protection, available in preview, aim to detect and block vulnerability exploitation.

The company also announced a Sensitive Data Scanner, currently in preview for AWS S3 and RDS instances, designed to prevent sensitive information from leaking into LLM training or inference datasets.

"AI has exponentially increased the ever-expanding backlog of security risks and vulnerabilities organizations deal with," said Prashant Prahlad, VP of Products, Security at Datadog, noting that AI applications present unique security challenges due to their non-deterministic nature.

The new security tools were announced at Datadog’s annual DASH conference, where the company also revealed launches in AI Observability, Applied AI, and Log Management. For investors seeking deeper insights into Datadog’s performance and growth potential, InvestingPro offers an extensive research report with detailed analysis of the company’s financials, valuation metrics, and growth prospects, along with 14 additional exclusive ProTips.

In other recent news, Datadog, Inc. has introduced several new developments that are of interest to investors. The company announced the launch of its Internal Developer Portal (IDP) during its annual DASH conference, which aims to provide developers with real-time system visibility and self-service capabilities. Additionally, Datadog unveiled new log management features designed to help organizations meet compliance needs and optimize costs, including Archive Search and CloudPrem. Shareholders have approved amendments to the company’s Certificate of Incorporation, which include provisions to limit the monetary liability of certain officers, aligning with Delaware law. Datadog has also introduced Toto, an open-source AI model for observability, and BOOM, a benchmark for observability metrics, as part of its AI Research division. Furthermore, the company is making progress toward achieving FedRAMP High authorization, enhancing its offerings for U.S. federal agencies. These developments underscore Datadog’s commitment to innovation and compliance in cloud application monitoring and security.

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