Datadog Expands Capabilities with Strategic Acquisition of Eppo Experimentation Platform

Datadog, a leader in cloud monitoring and security, has recently acquired Eppo, a cutting-edge feature flagging and experimentation platform. This acquisition follows Datadog's earlier purchase of Metaplane, an AI-powered observability startup, signaling the company’s aggressive expansion into AI-driven analytics and experimentation tools.

Eppo specializes in simplifying the complex infrastructure required for product experimentation. Unlike traditional analytics workflows that depend on intricate data pipelines and cloud configurations, Eppo offers streamlined solutions that enable developers to run randomized experiments with clear confidence intervals. This helps teams interpret results accurately and make informed decisions faster.

Founded by Che Sharma, who drew on his experience at Airbnb and Webflow, Eppo supports experimentation not only for app features but also for AI and machine learning models. This capability allows businesses to conduct live A/B tests comparing different AI models, helping them identify which model delivers better performance and user engagement.

The acquisition is expected to enhance Datadog’s existing product analytics offerings, providing customers with integrated tools for feature management, experimentation, and AI model evaluation. With the global product analytics market projected to grow significantly, this move positions Datadog to capture a larger share of this expanding sector.

Michael Whetten, VP of Product at Datadog, emphasized that experimentation addresses the challenges of deploying multiple AI models in production by enabling teams to compare models side-by-side and measure user engagement against costs. This capability is crucial for building AI products that deliver tangible value.

Eppo will continue operating under the brand “Eppo by Datadog,” supporting its existing customers such as Goldbelly, Netlify, and Kumu, while expanding its reach. The integration of Eppo’s experimentation platform with Datadog’s monitoring and security services promises to deliver a comprehensive solution for developers aiming to innovate rapidly while managing risks effectively.

This acquisition highlights the growing importance of experimentation in software development, especially in AI-driven environments. By providing tools that simplify experimentation infrastructure and improve analytics accuracy, Datadog and Eppo empower businesses to adopt an experiment-first culture, reduce deployment risks, and accelerate product innovation.