Snowflake has signed a definitive agreement to acquire Observe, an observability platform built natively on Snowflake’s databases, in a deal announced on January 8 and subject to regulatory approval. The acquisition will integrate Observe’s capabilities into Snowflake’s platform, giving customers a unified environment to collect, store, and analyze telemetry data — including logs, metrics, and traces — to detect performance issues and software bugs at AI scale.
Observe was founded in 2017 by Jacob Leverich, Jonathan Trevor, and Ang Li, and incubated at Sutter Hill Ventures, where Snowflake was also incubated under founding CEO Mike Speiser. Jeremy Burton, CEO of Observe, has served on Snowflake’s board since 2015. The integration is designed to help organizations proactively monitor increasingly complex data stacks driven by AI agents, using unified telemetry built on Apache Iceberg and OpenTelemetry. Deal terms were not disclosed, though reports value the transaction at approximately $1 billion, marking Snowflake’s largest acquisition to date.
