Snowflake announces its intent to buy observability platform Observe

Snowflake plans to get Observe, an observability level that has been built connected Snowflake’s databases from time one. (Observability platforms assistance companies show their bundle systems and information for show issues and bugs.)

The unreality information institution announced it signed a definitive statement to get Observe, taxable to regulatory approval, connected January 8. Snowflake volition integrate Observe’s merchandise into its ain to springiness customers a unified spot to cod and store their telemetry information (logs, metrics, and traces from bundle systems) and amended spot imaginable bugs and issues successful their information and software.

Observe was founded successful 2017 by Jacob Leverich, Jonathan Trevor, and Ang Li and launched its archetypal observability merchandise built connected a centralized Snowflake database successful 2018. The institution was incubated astatine Sutter Hill Ventures and has since raised astir $500 cardinal successful task capital from firms including Snowflake Ventures, Sutter Hill Ventures and Madrona, among others.

Notably, some Snowflake and Observe were incubated astatine Sutter Hill Ventures, with Sutter Hill managing manager Mike Speiser serving arsenic Snowflake’s founding CEO from 2012 to 2014.

Jeremy Burton, the existent CEO of Observe, has served connected Snowflake’s committee of directors since 2015.

Integrating Observe into Snowflake allows users to proactively show their information stack and spot and hole issues 10x faster than before, according to a Snowflake blog post — a task that has go harder to standard owed to the sheer measurement of information generated by AI agents.

The acquisition besides creates a unified model for telemetry data, which is automatically collected, built connected Apache Iceberg and OpenTelemetry architectures.

Terms of the woody were not disclosed. According to reports, the woody is valued astatine astir $1 billion, which would marque it Snowflake’s largest acquisition to date, surpassing its $800 cardinal acquisition successful March 2022 of Streamlit, an open-source model that allows developers and information scientists to rapidly physique and stock information applications without needing expertise successful front-end development.

Observe was astir precocious valued astatine $848 cardinal arsenic of July 2025, according to PitchBook data. TechCrunch has reached retired to Snowflake for much accusation connected the deal.

Last twelvemonth saw a wave of consolidation successful the information manufacture arsenic information companies looked to physique retired their merchandise offerings to marque themselves much charismatic one-stop-shop partners successful the property of AI.

This woody could beryllium a motion that information institution consolidation volition proceed successful 2026. Snowflake has been peculiarly active, completing and announcing respective AI-related acquisitions successful 2025, including Crunchy Data and Datavolo, and Select Star, a information governance and metadata absorption level that helps organizations recognize and hint their information astatine scale.