Snowflake Inc. (NYSE: SNOW) has announced that it has signed a definitive agreement to acquire Observe, a leader in AI-powered observability technology. The acquisition aims to enhance Snowflake’s AI Data Cloud by providing enterprises with advanced tools to monitor, analyze, and troubleshoot complex AI-driven systems efficiently.
Observe’s platform, built on Snowflake from its inception, leverages an AI Site Reliability Engineer (SRE) to correlate logs, metrics, and traces, enabling teams to detect anomalies, identify root causes, and resolve production issues up to ten times faster. Integrating Observe directly into Snowflake’s AI Data Cloud will allow organizations to ingest and retain 100% of telemetry data at lower costs, eliminating the need for sampling techniques while supporting large-scale AI applications.
“As our customers build increasingly complex AI agents and data applications, reliability is no longer just an IT metric—it’s a business imperative,” said Sridhar Ramaswamy, CEO of Snowflake. “By combining Observe’s AI capabilities with the Snowflake platform, we are empowering enterprises to manage observability across massive telemetry volumes with an open, scalable architecture.”
The combined platform will adopt open standards such as Apache Iceberg and OpenTelemetry, ensuring interoperability and cost-efficient handling of telemetry data. This unified architecture is designed to support next-generation AI applications, enabling proactive and automated troubleshooting across distributed systems.
Jeremy Burton, CEO of Observe, noted that the acquisition represents a “natural extension of the AI Data Cloud, allowing us to accelerate our observability solution at true enterprise scale.” The integration will provide developers with real-time enterprise context, faster root-cause analysis, and AI-assisted troubleshooting, critical for operating dynamic and autonomous systems.
The acquisition positions Snowflake to expand its footprint in the $51.7 billion IT operations management software market, which grew 9% in 2024 according to Gartner, and underscores the growing convergence between data platforms and observability solutions.
The transaction remains subject to regulatory approvals and other customary closing conditions. Financial terms of the deal were not disclosed.
About Snowflake
Snowflake is the platform for the AI era, enabling enterprises to innovate faster and derive more value from their data. Over 12,600 customers worldwide, including hundreds of the largest companies, use Snowflake’s AI Data Cloud to build, share, and scale data, applications, and AI.