Snowflake pronounces its intent to purchase observability platform Observe

Snowflake plans to amass Observe, an observability platform that has been constructed on Snowflake’s databases from day one. (Observability platforms assist firms monitor their software program methods and information for efficiency points and bugs.)

The cloud information firm introduced it signed a definitive settlement to amass Observe, topic to regulatory approval, on January 8. Snowflake will combine Observe’s product into its personal to offer prospects a unified place to gather and retailer their telemetry information (logs, metrics, and traces from software program methods) and higher spot potential bugs and points of their information and software program.

Observe was based in 2017 by Jacob Leverich, Jonathan Trevor, and Ang Li and launched its first observability product constructed on a centralized Snowflake database in 2018. The corporate was incubated at Sutter Hill Ventures and has since raised nearly $500 million in venture capital from companies together with Snowflake Ventures, Sutter Hill Ventures, and Madrona, amongst others.

Notably, each Snowflake and Observe had been incubated at Sutter Hill Ventures, with Sutter Hill managing director Mike Speiser serving as Snowflake’s founding CEO from 2012 to 2014.

Jeremy Burton, the present CEO of Observe, has served on Snowflake’s board of administrators since 2015.

Integrating Observe into Snowflake permits customers to proactively monitor their information stack and spot and repair points 10x quicker than earlier than, in keeping with a Snowflake blog post — a job that has grow to be more durable to scale as a result of sheer quantity of information generated by AI brokers.

The acquisition additionally creates a unified framework for telemetry information, which is robotically collected, constructed on Apache Iceberg and OpenTelemetry architectures.

Phrases of the deal weren’t disclosed. Based on studies, the deal is valued at round $1 billion, which might make it Snowflake’s largest acquisition to this point, surpassing its $800 million buy in March 2022 of Streamlit, an open supply framework that permits builders and information scientists to shortly construct and share information functions while not having experience in front-end improvement.

Observe was most lately valued at $848 million as of July 2025, in keeping with PitchBook information. TechCrunch has reached out to Snowflake for extra data on the deal.

Final 12 months noticed a wave of consolidation within the information business as information firms seemed to construct out their product choices to make themselves extra engaging one-stop-shop companions within the age of AI.

This deal may very well be an indication that information firm consolidation will proceed in 2026. Snowflake has been notably energetic, finishing and saying a number of AI-related acquisitions in 2025, together with Crunchy Data and Datavolo, and Select Star, a knowledge governance and metadata administration platform that helps organizations perceive and hint their information at scale.