Snowflake Announces Its Intention to Acquire Observe to Offer AI-Powered Observability

With this acquisition, Snowflake will offer the next generation of AI-powered observability, built on open standards and designed for the scale, complexity, and economics required by modern AI-driven enterprises.

Since its inception, Observe was built on Snowflake, and together, Snowflake and Observe will provide agentic AI to enterprises for faster problem resolution. Combining Observe's AI-powered site reliability engineering (SRE) with the reliable data in Snowflake enables a shift from reactive monitoring to proactive, automated problem resolution. Observe's AI SRE leverages a unified context graph that correlates logs, metrics, and traces, enabling teams to detect anomalies earlier and identify root causes faster.

The acquisition also establishes a unified, open-standard observability architecture based on Apache Iceberg and OpenTelemetry, standards to which Snowflake has continuously contributed. This approach enables companies to manage massive volumes of telemetry using cost-effective object storage, elastic computing, and interoperable standards—an essential foundation for operating next-generation AI agents and applications at scale. By treating telemetry as first-class data within Snowflake's AI Data Cloud, companies can consistently apply analytics and AI across observability and business data with greater flexibility, governance, and efficiency.

Additionally, as AI-powered applications generate unprecedented volumes of logs, metrics, and traces, enterprises have been increasingly forced to rely on sampling and short retention windows to manage costs. By unifying Observe's AI-powered observability platform with Snowflake's scalable database, organizations can eliminate these trade-offs and retain high-fidelity telemetry data, potentially reducing the cost of observability and improving visibility across their data assets.

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“As AI reshapes how applications are built; the bottleneck has shifted from writing code to operating and troubleshooting complex systems in production."

Jeremy Burton,
CEO,
Observe

“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.”

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“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."‎

Sanjeev Mohan,
Principal Analyst,
SanjMo

“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.

Source: Snowflake