Snowflake has signed a definitive agreement to acquire Observe, a leader in AI-powered observability. With this acquisition, Snowflake will deliver the next generation of AI-powered observability, built on open standards and designed for the scale, complexity, and economics required by modern AI-driven enterprises.
“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.”
From its inception, Observe was built on Snowflake and together, Snowflake and Observe will provide enterprises with:
- Agentic AI for faster troubleshooting: The combination of Observe’s AI-powered Site Reliability Engineer (SRE) with trusted data in Snowflake enables a shift from reactive monitoring to proactive, automated troubleshooting. Observe’s AI SRE leverages a unified context graph that correlates logs, metrics, and traces, allowing teams to detect anomalies earlier, identify root causes faster, and resolve production issues up to ten times faster, improving operational resilience as systems grow more distributed, dynamic, and autonomous.
- An open-standard architecture built for scale: The acquisition also establishes a unified, open-standard observability architecture based on Apache Iceberg and OpenTelemetry, standards which Snowflake has continuously contributed to. This approach allows enterprises to manage massive telemetry volumes using economical object storage, elastic compute, and interoperable standards, an essential foundation for operating next generation AI agents and applications at scale. By treating telemetry as first-class data within the Snowflake AI Data Cloud, enterprises can apply analytics and AI consistently across observability and business data, with greater flexibility, governance, and efficiency.
- Full telemetry data retention with efficient economics: As AI-driven applications generate unprecedented volumes of logs, metrics, and traces, enterprises have increasingly been forced to rely on sampling and short retention windows to manage cost. By unifying Observe’s AI-powered observability platform with Snowflake’s scalable and trusted data foundation, organizations can eliminate these tradeoffs and retain high-fidelity telemetry data, reducing observability cost substantially while improving visibility across their entire data estate.
