US EditionSnowflake Agrees to Buy Observe, a San Mateo AI Startup that Had Raised Nearly Half a Billion Dollars
Snowflake aims to enhance AI Data Cloud with Observe's AI Site Reliability Engineer, targeting cost-effective telemetry analysis and growth in IT operations management.
- On January 8, Snowflake Inc. signed a definitive agreement to acquire Observe, subject to regulatory approval, aiming to embed AI-powered observability into its AI Data Cloud built on Snowflake databases from day one.
- Last year saw a wave of consolidation pushing data firms to add observability, while Snowflake has been active in 2025 with AI acquisitions including Crunchy Data, Datavolo and Select Star.
- Snowflake will integrate Observe's platform into its core stack to let enterprises ingest, store, and analyze telemetry using Apache Iceberg and OpenTelemetry.
- The move targets the fast-growing IT operations management market and leverages Snowflake's $1.94 billion cash reserve as of Oct. 31, 2025, to integrate Observe's AI Site Reliability Engineer.
- Although terms were not disclosed, prior reports suggested the transaction could approach $1 billion, surpassing Snowflake's $800 million Streamlit purchase, with Observe valued at $848 million recently and backed by Sutter Hill Ventures.
15 Articles
15 Articles
Times of India
The Economic TimesSnowflake to acquire Observe, offer its AI observability tools to enterprises
In a statement, Snowflake said the Observe platform will be integrated directly into its AI data cloud so that enterprises can easily ingest and retain all of their telemetry data, including logs, metrics, and traces, while lowering observability costs by up to 60%.
Snowflake Strengthens AI Moat With Observe Deal - Snowflake (NYSE:SNOW)
Snowflake Inc. (NYSE:SNOW) announced plans to acquire Observe on Thursday, aiming to embed AI-powered observability into its AI Data Cloud and expand its footprint in IT operations management. The deal follows earlier reports that Snowflake had been in advanced talks to buy Observe for about $1 billion, highlighting the growing strategic importance of observability to its AI ambitions. Snowflake said it will integrate Observe’s platform into its…
Coverage Details
Bias Distribution
- 72% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
