Snowflake

Snowflake to Acquire Observability Startup Observe in Reported $1B Deal

January 8, 2026 - Snowflake has announced plans to acquire Observe, an observability platform natively built on Snowflake’s data infrastructure since its inception. Observability tools are essential for monitoring software performance and identifying bugs across complex systems.

The cloud data company signed a definitive agreement to acquire Observe on January 8, pending regulatory approval. Snowflake plans to fully integrate Observe’s capabilities into its platform, offering users a centralized solution to manage telemetry data — including logs, metrics, and traces — for improved software and data performance monitoring.

Founded in 2017 by Jacob Leverich, Jonathan Trevor, and Ang Li, Observe launched its initial product in 2018 on top of a centralized Snowflake database. The company has secured nearly $500 million in venture funding from investors such as Sutter Hill Ventures, Snowflake Ventures, and Madrona.

Both Snowflake and Observe share deep ties with Sutter Hill Ventures. Mike Speiser, managing director at the VC firm, was Snowflake’s founding CEO from 2012 to 2014. Additionally, Observe CEO Jeremy Burton has served on Snowflake’s board since 2015.

According to a Snowflake blog post, the integration will enable users to detect and resolve data stack issues up to 10 times faster, an increasingly difficult task as AI agents generate massive volumes of data. The combined platform will offer a unified telemetry data framework built on Apache Iceberg and OpenTelemetry standards.

While financial terms were not officially disclosed, reports suggest the deal is valued at approximately $1 billion — making it Snowflake’s largest acquisition to date. This surpasses its $800 million purchase of Streamlit in March 2022, an open-source platform for building data apps.

Observe’s most recent valuation stood at $848 million as of July 2025, according to PitchBook. TechCrunch has reached out to Snowflake for further details on the acquisition.

The deal follows a broader consolidation trend in the data space, with companies seeking to broaden their offerings amid growing demand for integrated AI solutions. Snowflake itself has been an active acquirer, completing several AI-focused deals in 2025, including Crunchy Data, Datavolo, and metadata management platform Select Star.

Source: https://techcrunch.com/2026/01/08/snowflake-announces-its-intent-to-buy-observability-platform-observe/