Snowflake (NYSE: SNOW), a company specializing in the AI Data Cloud, has announced the signing of a definitive agreement to acquire Observe, a leading provider of observability solutions based on artificial intelligence. Through this transaction, Snowflake will incorporate a new generation of AI-powered observability capabilities, built on open standards and designed to meet the scaling, complexity, and economic efficiency needs of modern organizations focused on AI.
“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 integrating Observe’s capabilities directly into Snowflake’s AI Data Cloud, we are empowering our customers to manage enterprise-wide observability — from terabytes to petabytes of telemetry — with an open, scalable architecture and AI-driven troubleshooting workflows.”
Since its inception, Observe was built on Snowflake, and together, Snowflake and Observe will provide companies with:
- AI-driven agent-based troubleshooting for faster problem resolution: The combination of Observe’s AI-Driven Site Reliability Engineering (SRE) and reliable data in Snowflake enables a shift from reactive monitoring to proactive, automated problem-solving. Observe’s AI SRE leverages a unified context graph correlating logs, metrics, and traces, allowing teams to detect anomalies earlier, identify root causes more quickly, and resolve production issues up to ten times faster, thereby increasing operational resilience as systems become 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 that Snowflake has continually contributed to. This approach enables companies to manage massive volumes of telemetry data using cost-effective object storage, elastic compute, and interoperable standards—forming a crucial foundation for deploying next-generation AI agents and applications at scale. By treating telemetry as first-class data within Snowflake’s AI Data Cloud, organizations can apply analytics and AI consistently across observability and business data, with greater flexibility, governance, and efficiency.
- Complete telemetry data retention with cost efficiency: As AI-driven applications generate unprecedented volumes of logs, metrics, and traces, organizations have increasingly relied on sampling and short retention windows to manage costs. By integrating Observe’s AI-powered observability platform with Snowflake’s scalable, trusted database, organizations can eliminate these trade-offs, retaining high-fidelity telemetry data, reducing observability costs significantly, and gaining enhanced visibility across their entire data estate.
“Observability is fundamentally a data problem, and integrating Observe into Snowflake is a natural extension of its AI Data Cloud, allowing us to accelerate our observability solution to true enterprise scale,” said Jeremy Burton, CEO of Observe. “As AI redefines how applications are built, the bottleneck has shifted from coding to operations and troubleshooting complex, production systems. Observe was born for this moment. By combining our AI-driven SRE with Snowflake’s AI Data Cloud, we can deliver insights faster, more reliably, and at a much better cost. Together, we will help organizations deploy the latest generation of AI applications and agents with confidence.”
“Cost issues in observability arise from treating telemetry as purpose-built data requiring specialized infrastructure. The industry is addressing this by integrating observability data within modern data platforms, leveraging existing lakehouse economies and AI capabilities. Snowflake’s acquisition highlights a critical industry trend: the lines between data platforms and observability platforms are blurring,” said Sanjeev Mohan, Senior Analyst at SanjMo.
Following the closing of this acquisition, Snowflake will strengthen its commitment to helping customers build and operate reliable agents and applications. Observe’s developer-friendly approach complements Snowflake’s existing workload engines by providing real-time business context, faster root cause analysis, and AI-assisted troubleshooting—critical components for operating dynamic, autonomous systems at scale. Snowflake will also expand its presence in the rapidly growing IT Operations Management (ITOM) software market. According to Gartner®, “the ITOM software market grew 9.0% in 2024, reaching $51.7 billion.”¹