Prime Highlight
- Snowflake announced plans to acquire Observe, integrating its observability platform to help customers monitor data and software systems more effectively.
- The combined platform aims to allow users to identify and fix issues up to ten times faster, supporting AI-driven workloads.
Key Facts
- Observe was founded in 2017 and has raised nearly $500 million from investors, including Snowflake Ventures, Sutter Hill Ventures, and Madrona.
- The acquisition, valued at around $1 billion, would surpass Snowflake’s $800 million purchase of Streamlit in 2022.
Background
Cloud data company Snowflake has announced its intention to acquire Observe, an observability platform designed to help companies monitor software systems and data for performance issues and bugs. The companies signed a definitive agreement on January 8, with the deal subject to regulatory approval.
Snowflake plans to integrate Observe’s platform into its own product suite. The move will allow customers to collect, store, and analyze telemetry data, including logs, metrics, and traces in a single place. Snowflake said this unified approach will help users identify and fix data and software issues faster, as system complexity grows with the rise of AI-driven workloads.
Observe was founded in 2017 by Jacob Leverich, Jonathan Trevor, and Ang Li. It launched its first product in 2018, built on a centralized Snowflake database. The company was incubated at Sutter Hill Ventures and has raised close to $500 million from investors, including Snowflake Ventures, Sutter Hill Ventures and Madrona.
The two companies share deep historical ties. Both were incubated at Sutter Hill Ventures, and Snowflake’s former founding CEO, Mike Speiser, also played a key role in Observe’s early development. Observe CEO Jeremy Burton has served on Snowflake’s board since 2015.
According to Snowflake, integrating Observe will allow users to monitor their data stacks more proactively and resolve issues up to ten times faster. The combined platform will support a unified telemetry framework built on Apache Iceberg and OpenTelemetry standards.
Financial terms were not disclosed, but reports estimate the deal value at around $1 billion. If confirmed, this deal would beat Snowflake’s $800 million purchase of Streamlit in 2022. Investors valued Observe at $848 million in mid-2025.
The acquisition shows that the data sector is still consolidating, as Snowflake expands its services to become a full-stack data and AI platform in 2026.
