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Snowflake Sets Its Sights on Observe: A Game-Changing Acquisition in Data Observability
In a strategic move to bolster its offerings in the realm of data observability, Snowflake has announced plans to acquire Observe, an innovative platform that has seamlessly integrated with Snowflake’s databases since its inception. This acquisition aims to enhance how organizations monitor and maintain the performance of their software systems, tackling potential issues and bugs with greater efficiency.
On January 8, Snowflake disclosed that it had signed a definitive agreement for the acquisition, pending regulatory approval. This integration promises to unify the telemetry data collection process—encompassing logs, metrics, and traces—into a single, powerful interface, allowing users to detect and resolve data anomalies at unprecedented speeds.
Founded in 2017 by Jacob Leverich, Jonathan Trevor, and Ang Li, Observe launched its first product built upon a centralized Snowflake database the very next year. The company has thrived with the backing of prominent venture capital firms, including Snowflake Ventures and Sutter Hill Ventures, amassing nearly $500 million to date. Notably, both Snowflake and Observe share a common origin at Sutter Hill Ventures, where Mike Speiser, a managing director, was the founding CEO of Snowflake from 2012 to 2014.
With Jeremy Burton at the helm of Observe since its inception, the company has also had a historical connection to Snowflake, with Burton serving on its board of directors since 2015. The integration of Observe into Snowflake’s ecosystem is positioned to allow users to monitor their data stack proactively, identifying and addressing issues at a pace ten times faster, a significant enhancement considering the growing complexities due to the influx of data from AI agents.
This acquisition is expected to create a cohesive framework for telemetry data collection, leveraging modern architectures such as Apache Iceberg and OpenTelemetry. Although specific terms of the deal remain undisclosed, reports suggest a valuation around $1 billion, making it Snowflake’s largest acquisition to date, surpassing its $800 million purchase of Streamlit in March 2022.
As of July 2025, Observe was valued at approximately $750 million, highlighting its robust market presence. In the previous year, the data industry experienced a wave of consolidation as companies sought to strengthen their product offerings, a trend that appears set to continue into 2026. Snowflake has been particularly proactive, embarking on several AI-centric acquisitions in 2025, including Crunchy Data, Datavolo, and Select Star.
This strategic acquisition of Observe not only marks a significant milestone in Snowflake’s growth but also signals ongoing trends within the data landscape, as companies strive to stay competitive in an increasingly complex digital environment.
