Snowflake buys Observe for AI-powered monitoring

The deal reflects the growing influence of observability as more than a standalone IT tool.

Dive Brief:

• Snowflake is acquiring AI-powered observability platform Observe, expanding its footprint in the IT operations management software market and supporting the growing demand for reliability. Terms of the deal were not disclosed, but in July, Observe reported closing a $156 million Series C funding round and doubling its enterprise customer base in the last year.
• The deal will integrate Observe’s observability capabilities directly into Snowflake’s AI Data Cloud, bolstering telemetry access and transparency for AI-driven enterprises.
• Snowflake said the acquisition will enable customers to shift from reactive monitoring to AI-driven troubleshooting, resolving production issues up to 10 times faster while lowering observability costs.

Dive Insight:

Snowflake’s acquisition highlights the rising importance of observability as a core platform requirement rather than a standalone IT tool, a shift that could reshape how enterprises ...