Snowflake Agrees to Acquire Observability Platform Observe

Snowflake has announced plans to acquire Observe, an observability company built natively on Snowflake’s data infrastructure. The cloud data provider said it signed a definitive agreement to acquire Observe on January 8, subject to regulatory approval.

Once completed, the acquisition will allow Snowflake to integrate Observe’s technology into its platform, giving customers a single environment to collect, store, and analyse telemetry data, including logs, metrics, and traces generated by software systems. The goal is to help organisations identify bugs, performance issues, and data anomalies more efficiently as their systems scale.

Observe was founded in 2017 by Jacob Leverich, Jonathan Trevor, and Ang Li and launched its first observability product in 2018, using a centralised Snowflake database. The startup was incubated at Sutter Hill Ventures and has raised close to $500 million in venture funding from investors including Snowflake Ventures, Sutter Hill Ventures, and Madrona.

The two companies share close historical ties. Both Snowflake and Observe were incubated at Sutter Hill Ventures, where managing director Mike Speiser served as Snowflake’s founding CEO from 2012 to 2014. In addition, Jeremy Burton, Observe’s current CEO, has been a member of Snowflake’s board of directors since 2015.

Snowflake said integrating Observe’s platform will allow customers to proactively monitor their data environments and resolve issues up to 10 times faster, a challenge that has grown more complex as AI agents generate increasingly large volumes of data. According to Snowflake, the combined offering will also create a unified telemetry framework built on Apache Iceberg and OpenTelemetry standards, with automatic data collection.

Financial terms were not disclosed. However, reports value the transaction at approximately $1 billion, making it Snowflake’s largest acquisition to date. That would surpass Snowflake’s $800 million purchase of Streamlit in March 2022. Observe was most recently valued at $848 million in July 2025, according to PitchBook.

The deal follows a broader wave of consolidation across the data industry, as companies look to expand their platforms and position themselves as comprehensive partners in the AI era. Snowflake has been particularly active, completing or announcing several AI-focused acquisitions in 2025, including Crunchy Data, Datavolo, and Select Star, a data governance and metadata management platform.

The Observe acquisition may signal that consolidation among data infrastructure companies will continue into 2026.