Snowflake to Acquire Observability Platform Observe in Major Deal
Snowflake, a leader in cloud data solutions, has announced its intention to acquire Observe, an observability platform that has been closely aligned with Snowflake’s database technology since its inception. This acquisition aims to enhance the capabilities of Snowflake’s services by providing customers a unified environment for monitoring software performance issues, data bugs, and overall system health.
In a definitive agreement revealed on January 8, Snowflake stated that the acquisition is subject to regulatory approvals. Once integrated, Observe’s sophisticated tools will allow users to collect and analyze telemetry data—including logs, metrics, and traces—streamlining the process of identifying and resolving issues.
Founded in 2017 by Jacob Leverich, Jonathan Trevor, and Ang Li, Observe debuted its first product in 2018, developed on a centralized Snowflake database. The company has received substantial backing, raising nearly $500 million from investors such as Snowflake Ventures and Sutter Hill Ventures, where both firms were initially incubated.
Jeremy Burton, Observe’s CEO and a member of Snowflake’s board of directors since 2015, noted that the integration will empower users to proactively monitor their data stacks. This can significantly accelerate bug detection and resolution processes—up to ten times faster—addressing the challenges posed by the expansive volumes of data generated by AI technologies.
The acquisition also introduces a comprehensive framework for handling telemetry data, leveraging architectures like Apache Iceberg and OpenTelemetry for automated collection.
While the specific financial terms of the deal remain undisclosed, estimates suggest it may be valued at approximately $1 billion, establishing it as Snowflake’s largest acquisition to date. This figure surpasses the $800 million cost of its previous acquisition of Streamlit in March 2022.
This strategic move aligns with the growing trend of consolidation within the data industry, as companies aim to enhance their product offerings in an increasingly competitive market driven by AI advancements. Snowflake has been particularly proactive in acquiring firms, having announced several AI-related purchases throughout 2025, indicating a commitment to evolving its service portfolio for a one-stop-shop experience.
