Snowflake has announced plans to acquire Observe, an observability platform. Observability platforms assist companies in monitoring their software systems and data for performance issues and bugs. The cloud data company signed a definitive agreement for the acquisition on January 8, pending regulatory approval.
Snowflake intends to integrate Observe’s product into its own. This integration will provide customers a unified platform to collect and store their telemetry data, which includes logs, metrics, and traces from software systems. The goal is to enable customers to better identify potential bugs and issues in their data and software.
Observe was founded in 2017 by Jacob Leverich, Jonathan Trevor, and Ang Li. The company launched its first observability product in 2018, built from the start on a centralized Snowflake database. Observe was incubated at Sutter Hill Ventures and has raised nearly $500 million in venture capital from firms including Snowflake Ventures, Sutter Hill Ventures, and Madrona.
Both Snowflake and Observe share a history with Sutter Hill Ventures. Sutter Hill managing director Mike Speiser served as Snowflake’s founding CEO from 2012 to 2014. Furthermore, Jeremy Burton, the current CEO of Observe, has been a member of Snowflake’s board of directors since 2015.
According to Snowflake, integrating Observe will allow users to proactively monitor their data stack and resolve issues ten times faster than before. This capability is increasingly critical as the volume of data generated by AI agents makes scaling such tasks more difficult. The acquisition also establishes a unified framework for telemetry data, automatically collected and built on Apache Iceberg and OpenTelemetry architectures.
The financial terms of the deal were not publicly disclosed. However, reports indicate the acquisition is valued at approximately $1 billion. This would make it Snowflake’s largest acquisition to date, surpassing its $800 million purchase of Streamlit in March 2022. Observe was most recently valued at $848 million as of July 2025.
This move occurs amid a wave of consolidation in the data industry, as companies expand their product offerings to become comprehensive partners in the age of AI. Snowflake has been particularly active, completing several AI-related acquisitions in 2025, including Crunchy Data, Datavolo, and Select Star, a data governance platform. This deal could signal that data company consolidation will continue into 2026.