Snowflake plans to acquire Observe, an observability platform that has been built on Snowflake’s databases from day one. (Observability platforms help companies monitor their software systems and data for performance issues and bugs.)
The cloud data company announced it signed a definitive agreement to acquire Observe, subject to regulatory approval, on January 8. Snowflake will integrate Observe’s product into its own to give customers a unified place to collect and store their telemetry data (logs, metrics, and traces from software systems) and better spot potential bugs and issues in their data and software.
Observe was founded in 2017 by Jacob Leverich, Jonathan Trevor, and Ang Li and launched its first observability product built on a centralized Snowflake database in 2018. The company was incubated at Sutter Hill Ventures and has sinceraised nearly $500 million in venture capitalfrom firms including Snowflake Ventures, Sutter Hill Ventures and Madrona, among others.
Notably, both Snowflake and Observe were 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 current CEO of Observe, has served on Snowflake’s board of directors since 2015.
Integrating Observe into Snowflake allows users to proactively monitor their data stack and spot and fix issues 10x faster than before, according to aSnowflake blog post— a task that has become harder to scale due to the sheer volume of data generated by AI agents.
The acquisition also creates a unified framework for telemetry data, which is automatically collected, built on Apache Iceberg and OpenTelemetry architectures.
Observe was most recently valued at $848 million as of July 2025, according to PitchBook data. TechCrunch has reached out to Snowflake for more information on the deal.
Last year saw awave of consolidationin the data industry as data companies looked to build out their product offerings to make themselves more attractive one-stop-shop partners in the age of AI.
This deal could be a sign that data company consolidation will continue in 2026. Snowflake has been particularly active, completing and announcing several AI-related acquisitions in 2025, includingCrunchy DataandDatavolo, andSelect Star, a data governance and metadata management platform that helps organizations understand and trace their data at scale.
Source: Techcrunch
