Snowflake has signed a definitive agreement to acquire Observe, an observability platform built directly on Snowflake’s databases, with the goal of giving customers a unified way to collect, store, and analyze telemetry data across their software and data systems.
Deal Details And Integration Plans
Snowflake announced on January 8 that it has entered into an agreement to acquire Observe, subject to regulatory approval. Snowflake said it plans to integrate Observe’s technology into its own product portfolio so customers can manage logs, metrics, and traces in a single environment and more easily detect bugs and performance issues in their data and applications.
Observability platforms are used by organizations to monitor software systems and underlying data flows, helping teams identify operational problems and failures. Snowflake said the combined offering will allow customers to proactively monitor their data stacks and address issues more quickly as data volumes increase.
Observe’s Background And Ties To Snowflake
Observe was founded in 2017 by Jacob Leverich, Jonathan Trevor, and Ang Li. The company launched its first observability product in 2018, built on a centralized Snowflake database from the start.
The startup was incubated at Sutter Hill Ventures and has raised nearly $500 million in venture capital. Investors include Snowflake Ventures, Sutter Hill Ventures, and Madrona.
Both Snowflake and Observe share historical ties to Sutter Hill Ventures. Mike Speiser, a managing director at Sutter Hill, served as Snowflake’s founding chief executive from 2012 to 2014. Jeremy Burton, Observe’s current CEO, has also served on Snowflake’s board of directors since 2015.
Technical Architecture And Product Claims
Snowflake said integrating Observe will give customers a single framework for telemetry data that is automatically collected and built on Apache Iceberg and OpenTelemetry architectures. In a blog post, Snowflake said the combined system can help users detect and resolve data and software issues up to 10 times faster, a challenge the company said has grown as AI agents generate larger volumes of telemetry data.
Valuation And Acquisition Context
The financial terms of the transaction were not disclosed. Reports have valued the deal at around $1 billion, which would make it Snowflake’s largest acquisition to date. That would exceed Snowflake’s $800 million acquisition of Streamlit in March 2022.
Observe was most recently valued at $848 million as of July 2025, according to data from PitchBook. TechCrunch reported that it has contacted Snowflake for additional details about the transaction.
Recent Activity In The Data Sector
The acquisition follows a period of consolidation across the data industry in 2025, as companies expanded their product offerings to cover more aspects of the data stack. Snowflake has been active in this area, announcing or completing several AI-related acquisitions in 2025, including Crunchy Data, Datavolo, and Select Star, which focuses on metadata management and data lineage.
Featured image credits: SOPA Images/LightRocket via Getty Images
For more stories like it, click the +Follow button at the top of this page to follow us.