Snowflake said it has signed a definitive agreement to acquire Observe, an observability platform built natively on Snowflake’s databases. The transaction, announced January 8 and subject to regulatory approval, would integrate Observe’s tools directly into Snowflake’s platform to centralize the collection and analysis of telemetry data, including logs, metrics, and traces.
Founded in 2017, Observe raised nearly $500 million from investors including Sutter Hill Ventures, Madrona, and Snowflake Ventures. Both companies were incubated at Sutter Hill, and Observe CEO Jeremy Burton has served on Snowflake’s board since 2015.
Snowflake said the integration will allow customers to monitor data pipelines and application performance more efficiently as AI agents generate rising volumes of operational data. Observe’s platform uses Apache Iceberg and OpenTelemetry architectures to standardize telemetry ingestion and analysis.
Financial terms were not disclosed, though reports place the deal near $1 billion, exceeding Snowflake’s $800 million acquisition of Streamlit in 2022. The transaction reflects continued consolidation in the data and AI infrastructure market, following Snowflake’s recent purchases of Crunchy Data, Datavolo, and Select Star.
