Snowflake to Acquire Observe in Push to Build AI-Powered Observability at Enterprise Scale
The combined platform will be built on open standards such as Apache Iceberg and OpenTelemetry, enabling cost-efficient storage, elastic compute and interoperability.
Snowflake announced that it has signed a definitive agreement to acquire Observe, an AI-powered observability platform built natively on Snowflake, as the data cloud company moves to strengthen reliability and operations for AI-driven enterprises.
The acquisition will integrate Observe’s observability capabilities directly into the Snowflake AI Data Cloud, enabling customers to monitor and troubleshoot complex systems generating terabytes to petabytes of telemetry data.
Financial terms of the deal were not disclosed, and the transaction remains subject to regulatory approvals and customary closing conditions.
“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, Snowflake. “By bringing Observe’s capabilities directly into the Snowflake AI Data Cloud, we are empowering our customers to manage enterprise-wide observability across terabytes to petabytes of telemetry with an open, scalable architecture and AI-powered troubleshooting workflows.”
Observe was designed from the outset to run on Snowflake. Together, the companies aim to shift observability from reactive monitoring to proactive, automated troubleshooting through agentic AI. Observe’s AI-powered Site Reliability Engineer uses a unified context graph that correlates logs, metrics and traces, allowing teams to detect anomalies earlier and resolve issues significantly faster.
The combined platform will be built on open standards such as Apache Iceberg and OpenTelemetry, enabling cost-efficient storage, elastic compute and interoperability. Snowflake said this approach allows enterprises to retain full-fidelity telemetry data without relying on sampling or short retention windows.
“Observability is fundamentally a data problem, and Observe joining Snowflake is a natural extension of their AI Data Cloud. By combining our AI-powered SRE with Snowflake’s AI Data Cloud, we can deliver faster insights, greater reliability, and dramatically better economics. Together, we’ll help enterprises run the next generation of AI applications and agents with confidence,” said Jeremy Burton, CEO, Observe.
"The industry is correcting this by bringing observability data into modern data platforms where it can leverage existing lakehouse economics and AI capabilities. Snowflake's acquisition highlights a critical industry insight: the lines between data platforms and observability platforms are blurring,” said Sanjeev Mohan, Principal Analyst, SanjMo.
Snowflake said the acquisition also strengthens its position in the growing IT operations management market, which Gartner estimates reached $51.7 billion in 2024.
In November last year, Snowflake announced its acquisition of metadata platform Select Star, marking a major step in enhancing its Horizon Catalog with intelligent data context for AI and analytics.
