Palo Alto Networks CEO Nikesh Arora engaged in acquisition discussions with Okta and Datadog leadership between 2024 and 2025, according to a report by The Information. Talks with Okta progressed to product integration talks but stalled over valuation discrepancies, while Datadog CEO Olivier Pomel declined to entertain a hypothetical offer during spring 2025.
The failed negotiations coincided with Palo Alto’s $25 billion acquisition of CyberArk in July 2025 and the $3.35 billion purchase of Chronosphere in January 2026. Chronosphere, a smaller rival to Datadog specializing in log data and observability, contributed $338 million to Palo Alto’s quarterly revenue of $3 billion reported in April.
Okta’s market capitalization has risen roughly 30% since early 2024, reaching approximately $23 billion, up from about $13.5 billion at the start of last year. Datadog’s valuation has more than doubled to over $80 billion since it was approached in spring 2025, when its public market cap stood at more than $40 billion.
Arora’s strategic focus reflects a broader shift in enterprise security priorities, driven by the rise of AI-powered cyber threats. The CEO has indicated that AI agents can execute attacks beyond human capability, elevating the importance of continuous system monitoring. Palo Alto’s recent deals follow moves by AI developers such as Anthropic and OpenAI, which have introduced AI-powered vulnerability detection tools, including Anthropic’s Mythos platform launched in May.
