PrefactorvsDatadogvsLogfire

Datadog vs Logfire: how to choose

Both are general observability vendors with agent tracing, evals and prompt versioning. Datadog is the natural choice if your services already report to Datadog; Logfire suits teams that want one OpenTelemetry platform, a self-hosted path on Enterprise and a gateway in the same product. The APM vendor you already pay for usually settles this.[1][4]

support-agent v4 · one run, two layersexample
Illustrative run, showing what each layer tells you
Datadog / Logfiresee
fetch_customer212ms · 1.2k tok
apply_refund1.4s · 3.1k tok
send_reply340ms · 0.8k tok
trace recorded, no verdict
Prefactoradds
Did its job✓ yes
Quality84 / 100
Cost$0.42 · in budget
Drift vs baselinenone
✓ a run that breaches its schema is held for review
§01 / THE SHORT ANSWERtl;dr: which, and when
TL;DR

What is the difference between Datadog and Logfire?

Datadog Agent Observability (formerly LLM Observability) and Logfire both put agent traces beside the rest of your application telemetry; the difference is that Datadog's is a module of the Datadog SaaS platform with no self-hosted option, while Logfire is a standalone OpenTelemetry platform from Pydantic that can be self-hosted on Enterprise. Datadog bills only LLM spans, and Logfire bills every record. For blocking, Datadog sells AI Guard separately, and Logfire's AI gateway covers model calls.

The short answer

At a glance (checked 20 October 2026)

Decision factorDatadogLogfire
OwnershipDatadog, public company (Nasdaq: DDOG)Pydantic, independent
RequiresA Datadog account; one module of the Datadog platformStandalone; any OpenTelemetry SDK can send data
Self-hostingNone; Datadog-hosted onlyEnterprise, on Kubernetes via Helm
What is billedLLM spans only; tool and agent spans are not billedAll records: spans, logs and metrics
Run-time blockingAI Guard, a separate product in limited availabilityGateway guardrails and spend caps on model calls
SDKsPython, Node.js, Java, Go (experimental), HTTP APIPython, JavaScript/TypeScript, Rust
Free tier40K LLM spans a month, 15-day retentionPersonal: 10M records a month, 1 seat, 30-day retention
First paid tierPro: $160 a month billed annually, 100K LLM spansTeam: $49 a month, 10M records, 5 seats
§02 / CAPABILITY MATRIXside by side: what each covers
Side by side

Datadog vs Logfire: capabilities side by side

CapabilityDatadogLogfirePrefactor
Observe
LLM call tracing✓✓✓
Multi-step agent tracing (tool calls, nested spans)✓✓✓
Cost tracking✓✓✓
OpenTelemetry support✓✓✓
Evaluate
Offline evals (datasets, experiments)✓✓✓
Online evals on production traffic✓✓✓
LLM-as-a-judge scoring✓✓✓
Code-based evaluators✓✓✓
Human review and annotation✓Partial✓
Prompt versioning and playground✓✓—
Act on findings
Runtime controls on live agent actionsPartialPartial✓
Gateway or proxy in the request path—✓—
Licence and deployment
Open sourcePartialPartialPartial
Self-hosting—PartialPartial
§03 / IN DEPTHdetail: the reasoning
In depth

Which platform your services already report to

Datadog renamed LLM Observability to Agent Observability in June 2026; the documentation still sits under the old path. It is one product inside the Datadog platform and needs a Datadog account, and its value comes from correlating agent traces with the APM and infrastructure data already there. It accepts OTLP traces directly without the Datadog SDK or Agent, using OpenTelemetry GenAI conventions v1.37 or later or OpenInference, with a three to five minute ingestion delay. It is not available on Datadog's US government sites.

Read more

Logfire is a standalone platform. Its SDKs are OpenTelemetry wrappers that record HTTP requests, database queries, logs and metrics together with model and tool calls, and any standard OpenTelemetry SDK can send data. For a team without an APM vendor, Logfire can cover both jobs. For a team that already runs Datadog, adding Logfire means a second place to look during an incident, which is often the deciding cost.

SDK coverage is uneven on the Datadog side. Python and Node.js are well covered, the Java SDK has one auto-instrumented integration (OpenAI) and the Go SDK is experimental with manual instrumentation only; any language can use the HTTP API or OTLP. Logfire's richest tooling is also Python-first, with JavaScript, TypeScript and Rust SDKs alongside. For local work, Datadog's Lapdog shows traces on your machine without a Datadog account.

Evals and prompt versioning

The two are closer here than their positioning suggests. Datadog runs experiments against versioned datasets, which can be built from production traces, plus a browser Playground. Custom LLM judges run automatically on targeted production spans with sampling, using your own connected provider account. Code evaluators run automatically only in experiments; in production you run them in your application and submit results through the SDK or HTTP API. Datadog lists DeepEval, Pydantic Evals and NVIDIA NeMo evaluators as supported, so pydantic-evals code can feed either platform.

Read more

Logfire's live evaluations also run in your application, in the background at a sample rate, and report results as OpenTelemetry events. For people, Datadog has annotation queues; Logfire's run annotations are in beta and queues are early access. Both version prompts, fetch them at runtime and control rollout with labels or targeting rules. Datadog adds A/B tests of prompt versions, with some sub-features in Preview; Logfire adds a Prompt Playground that replays prompts from captured traces.

Blocking at run time

Agent Observability itself monitors and evaluates but does not block. Blocking of prompts, responses and tool calls is AI Guard, a separate Datadog product billed per token scanned and listed as Limited Availability in June 2026. It is the only option of the two that names tool calls in scope. Logfire's gateway, part of Logfire since March 2026, applies per-rule observe, flag, redact or block actions to model calls and enforces hard spend caps, but it does not cover tool actions and neither vendor documents approval holds.

Pricing shape

As of 20 October 2026, Datadog's Free plan covers 40K LLM spans a month with 15-day retention. Pro is $160 a month billed annually ($200 month to month, $240 on demand) for the first 100K LLM spans, then $3.50 per 10K on annual terms. Retention beyond 15 days is an add-on, from $6.50 per 10K spans for 30 days. Only calls to an LLM provider are billed; tool, workflow, agent, retrieval and embedding spans are not.

Read more

Logfire bills every record: Personal is free for 10M records and one seat, Team is $49 a month with 10M records and five seats, Growth is $249 a month with unlimited seats, and extra records cost $2 per million. An agent with many tool calls per model call meters lightly on Datadog; an application with many non-LLM spans meters heavily on Logfire. Compare Datadog's pricing and Logfire's pricing on your own traffic.

§04 / THE QUALITY GAPour take: where it stops
Our take

Where Prefactor fits

We sell the layer this section describes. Read it with that in mind.

Stated plainly, since Prefactor publishes this page: Prefactor is an agent evaluation platform that scores each step of a run and acts on what it finds through runtime policies on tool calls and data access, approval holds for risky actions and a kill switch for a run, an agent or a team. Datadog's AI Guard, sold separately and in limited availability, can block tool calls; Logfire's gateway covers model calls. Neither documents approval holds. Prefactor is not an APM tool, has no prompt playground or prompt registry, and its platform is hosted. See the full comparison of 15 platforms.

See it on your own agents

A working session on a fleet like yours: watch a run evaluated, catch a drift, walk the record.

§05 / WHICH TO PICKdecide: by your stack
Which to pick

Which one fits

Pick Datadog if

  • Your services, hosts and logs already report to Datadog.
  • Your agents make many tool calls per model call, so billing only LLM spans helps.
  • You want annotation queues and prompt A/B tests today.
  • You may need blocking on tool calls and can buy AI Guard separately.

Pick Logfire if

  • You do not use Datadog and want one OpenTelemetry platform for the whole application.
  • You may need to self-host on Enterprise.
  • You want a gateway with guardrails and spend caps in the same product.
  • You work in Python or Rust, especially with Pydantic AI.
§06 / HOW WE REVIEWEDsources: checked October 20, 2026
Methodology

How we reviewed this comparison

Reviewed against public product and documentation pages on October 20, 2026. If a vendor has changed a feature, product name, or positioning since then, send a correction and we will update it. Numbered source links in the page body point to the ordered sources below.

Sources reviewed

  1. Datadog pricingChecked 2026-10-20.
  2. Datadog documentation
  3. Datadog website
  4. Logfire pricingChecked 2026-10-20.
  5. Logfire documentation
  6. Logfire website
  7. Prefactor platform
Prefactor context

Methodology

  • Reviewed public product, documentation, and launch material visible at the time of writing.
  • Mapped each page to the primary buyer, control layer, and runtime capabilities each vendor describes publicly.
  • Prefer direct product and documentation pages over analyst summaries or reseller material.
§07 / QUESTIONSfaq: the common ones
Questions
What is the difference between Datadog and Logfire for agents?
Both trace agents alongside application telemetry and offer evals and prompt versioning. Datadog Agent Observability is a module of the Datadog SaaS platform and bills only LLM spans. Logfire is a standalone OpenTelemetry platform from Pydantic that bills every record and includes an AI gateway.
How does Prefactor compare with Datadog and Logfire?
Prefactor is an agent evaluation platform for teams building AI agents: it observes every agent run from development to production, evaluates whether the agent did its job, and shows how to improve it. As of 20 October 2026, Prefactor can block or hold a live agent action; Datadog and Logfire do so in part. Prefactor supports human review and annotation; Datadog does too and Logfire does so in part. Datadog and Logfire both include prompt versioning and a playground. Prefactor evaluates how prompts perform in live runs rather than providing a prompt playground or registry.
Can I send traces to Datadog without the Datadog SDK?
Yes. As of 20 October 2026, Agent Observability accepts OTLP traces directly using OpenTelemetry GenAI conventions v1.37 or later or OpenInference, with a three to five minute ingestion delay. It is not available on US government sites.
Can I self-host Datadog Agent Observability or Logfire?
Datadog documents no self-hosted deployment; Lapdog is a local trace viewer for development, not a production option. Logfire can be self-hosted on the Enterprise plan, on Kubernetes via Helm.
Can I use pydantic-evals with Datadog?
Yes. Datadog lists Pydantic Evals among supported evaluator sources, alongside DeepEval and NVIDIA NeMo. In production you run code evaluators in your application and submit the results.
Is the old Datadog LLM Observability product still available?
It was renamed Agent Observability in June 2026, with new Free and Pro tiers. The documentation still uses the llm_observability path.
Who owns Datadog?
As of 20 October 2026: Datadog, a public company (Nasdaq: DDOG). Agent Observability is one product within the Datadog platform and needs a Datadog account.
Is Datadog open source?
Partly. The platform is proprietary SaaS; instrumentation SDKs such as dd-trace-py are open source. There is no self-hosted option.
How much does Datadog cost?
As of 20 October 2026: Free covers 40K LLM spans a month with 15-day retention. Pro is $160 a month billed annually for 100K LLM spans, then $3.50 per 10K. Only LLM spans are billed; tool and agent spans are not.
Can Datadog block or hold a live agent action?
Partly. Agent Observability monitors and evaluates but does not block. Blocking prompts, responses and tool calls needs AI Guard, a separate Datadog product in limited availability, billed per token scanned.
Who owns Logfire?
As of 20 October 2026: Pydantic, the company behind the Pydantic library and Pydantic AI. It is independent and backed by Sequoia, which led its $12.5M Series A in 2024.
Is Logfire open source?
Partly. The SDKs, pydantic-evals and Pydantic AI are MIT-licensed; the Logfire platform is closed source. Self-hosting is Enterprise only.
How much does Logfire cost?
As of 20 October 2026: Personal is free with 10M records a month. Team is $49 a month and Growth $249 a month, each with 10M records included, then $2 per extra million. Enterprise is custom.
Can Logfire block or hold a live agent action?
Partly. Model calls routed through its AI gateway can be flagged, redacted or blocked, and spend caps stop requests over budget. Tool actions outside the gateway are not covered.
Is Prefactor open source?
Partly. Its deterministic evals package is Apache-2.0; the platform is hosted.
How much does Prefactor cost?
As of 20 October 2026: Dev is free with 5,000 spans a month. Startup is $49 a month and Scaleup $199 a month. Enterprise is custom above 4 million spans a month.
Can Prefactor block or hold a live agent action?
Yes. Runtime policies can block, throttle, sandbox or escalate an agent's tool calls and data access before they run, approval routing holds risky actions for a person, and a kill switch stops a run, an agent or a team.
Reviewed against public sources on October 20, 2026Suggest a correction

Score the run, then act on it

Prefactor scores each step of every agent run and can hold or stop an action when a score says it should not happen. Start on the free tier: 5,000 spans a month, no credit card required.

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7Instances
5Services
12%Human Intervene
4High Risk
$2,360Monthly Spend
Mission ControlLive agent health with 7-day activity heartbeat
Claims Proc...68
$330/moRed
Claims Proc...65
$160/moRed
Claims Proc...82
$170/moAmber
ChatGPT74
$150/moAmber

See how every agent performs, and make it better

Prefactor helps teams observe, evaluate, and improve their AI agents in production, across every framework and provider.