January 8, 2026 — Leads & Copy — Snowflake (NYSE: SNOW) has entered into a definitive agreement to acquire Observe, an AI-powered observability leader. Snowflake aims to deliver the next generation of AI-powered observability, built on open standards, for modern AI-driven enterprises.
Sridhar Ramaswamy, CEO of Snowflake, stated that as customers build complex AI agents and data applications, reliability is a business imperative. Integrating Observe’s capabilities into the Snowflake AI Data Cloud will empower customers to manage enterprise-wide observability across terabytes to petabytes of telemetry with an open, scalable architecture and AI-powered troubleshooting workflows.
Observe was built on Snowflake, and together, they aim to provide enterprises with:
Agentic AI for Faster Troubleshooting: Combining Observe’s AI-powered Site Reliability Engineer (SRE) with trusted data in Snowflake allows a shift from reactive monitoring to proactive, automated troubleshooting. Observe’s AI SRE correlates logs, metrics, and traces, enabling teams to detect anomalies earlier, identify root causes faster, and resolve production issues up to ten times faster.
Open-Standard Architecture for Scale: The acquisition establishes a unified, open-standard observability architecture based on Apache Iceberg and OpenTelemetry. This allows enterprises to manage massive telemetry volumes using economical object storage, elastic compute, and interoperable standards.
Full Telemetry Data Retention with Efficient Economics: Unifying Observe’s AI-powered observability platform with Snowflake’s data foundation allows organizations to retain high-fidelity telemetry data, reducing observability costs while improving visibility across their entire data estate.
Jeremy Burton, CEO of Observe, noted that observability is fundamentally a data problem, and joining Snowflake is a natural extension of their AI Data Cloud. Burton believes that by combining their AI-powered SRE with Snowflake’s AI Data Cloud, they can deliver faster insights, greater reliability, and better economics.
Sanjeev Mohan, Principal Analyst, SanjMo, stated that the industry is correcting the cost problem of observability by bringing observability data into modern data platforms. He added that Snowflake’s acquisition highlights a critical industry insight: the lines between data platforms and observability platforms are blurring.
Snowflake will deepen its commitment to helping customers build and operate reliable agents and applications. Observe’s developer-friendly approach complements Snowflake’s workload engines by providing teams with real-time enterprise context, faster root-cause analysis, and AI-assisted troubleshooting. Snowflake will also expand its presence in the IT operations management software market, which, according to Gartner®, grew 9.0% in 2024 to reach $51.7B.
Closing of the acquisition is subject to regulatory approvals and other conditions.
Source: Snowflake
