UBS analysts point out that OpenAI now runs Datadog (DDOG, Financial) and privately held Chronosphere side by side to monitor its GPU workloads. While building an in‑house tool seems unlikely, growing use of Chronosphere could squeeze Datadog's pricing power.
Despite that risk, UBS kept a buy rating on Datadog and lifted its price target from 140 dollars to 165 dollars. The firm still expects mid 20 percent revenue growth and steady margins in the near term.
Datadog's recent inclusion in the S&P 500 highlights its strong market momentum in observability. Even so, any shift in how OpenAI allocates spending between platforms may create pressure on fees.
Investors will want to track usage trends closely. If volume gains outpace any customer migration, Datadog may enjoy a boost in revenue before any loss in share becomes meaningful.
