Snowflake Inc., a company specializing in the AI Data Cloud, announced that it has signed a definitive agreement for the acquisition of Observe, a top AI-powered observability solution provider. This strategic purchase is a move by Snowflake to cement its place in the ever-expanding observability solution space for enterprises and help its clients realize clarity and reliability in complicated AI-infused systems.
This move will expand Snowflake’s capabilities in the more than $50 billion IT operations management software market, positioning the company to deliver next-generation, AI-powered observability built on open standards and optimized for modern enterprise environments.
Unlocking AI-Powered Observability Across the Enterprise
By integrating Observe’s advanced observability technology directly into Snowflake’s AI Data Cloud, enterprises will be able to ingest and retain 100% of their telemetry data at lower cost, eliminating traditional tradeoffs between visibility and economics.
The combined solution will enable organizations to move beyond reactive monitoring toward proactive, automated troubleshooting resolving issues up to ten times faster. This is achieved by uniting Observe’s AI-powered Site Reliability Engineer (SRE) with Snowflake’s high-fidelity data and unified telemetry context.
Key Benefits for Enterprise Customers
Enhanced Troubleshooting with Agentic AI
The integration of Observe’s AI SRE with Snowflake’s trusted data allows teams to correlate logs, metrics, and traces within a single context graph. This unified view accelerates anomaly detection and root cause analysis, enhancing operational resilience as distributed systems grow in complexity.
Open-Standard Architecture for Scale
The acquisition establishes a unified observability architecture based on Apache Iceberg and OpenTelemetry, standards that Snowflake has actively supported. This open design enables enterprises to efficiently handle massive telemetry volumes using economical object storage and elastic compute, all within a flexible and governed data environment.
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Comprehensive Telemetry Retention
With AI applications generating vast quantities of logs, metrics, and traces, enterprises have historically had to compromise on retention or incur high costs. The combined Snowflake-Observe platform allows full telemetry retention, improving visibility while reducing total observability costs.
Leadership Perspectives
“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, Snowflake. “By bringing Observe’s capabilities directly into the Snowflake AI Data Cloud, we are empowering our customers to manage enterprise-wide observability across terabytes to petabytes of telemetry with an open, scalable architecture and AI-powered troubleshooting workflows.”
“Observability is fundamentally a data problem, and Observe joining Snowflake is a natural extension of their AI Data Cloud, allowing us to accelerate our observability solution at true enterprise scale,” said Jeremy Burton, CEO, Observe. “As AI reshapes how applications are built, the bottleneck has shifted from writing code to operating and troubleshooting complex systems in production. Observe was built for this moment. By combining our AI-powered SRE with Snowflake’s AI Data Cloud, we can deliver faster insights, greater reliability, and dramatically better economics. Together, we’ll help enterprises run the next generation of AI applications and agents with confidence.”
Industry Insight
“Observability’s cost problem stems from treating telemetry as special-purpose data requiring specialized infrastructure. The industry is correcting this by bringing observability data into modern data platforms where it can leverage existing lakehouse economics and AI capabilities. Snowflake’s acquisition highlights a critical industry insight: the lines between data platforms and observability platforms are blurring,” said Sanjeev Mohan, Principal Analyst, SanjMo.
Market Position and Next Steps
Upon closing, Snowflake plans to deepen its commitment to helping enterprises build and operate reliable AI agents and applications. Observe’s developer-friendly approach is seen as complementary to Snowflake’s existing workload engines, augmenting real-time context, root-cause analysis, and AI-assisted troubleshooting all central to managing dynamic, autonomous systems at scale.