Snowflake announces its intention to purchase monitoring platform Observe

Snowflake plans to acquire Observe, an observability platform that has been built on Snowflake’s databases since day one. (Monitoring platforms help companies monitor their software systems and data for performance issues and errors.)

The cloud data company announced that it has signed a definitive agreement to acquire Observe, subject to regulatory approval, on January 8. Snowflake will integrate the Observe product into its own product to give customers a unified place to collect and store their telemetry data (logs, metrics, and traces from software systems) and better identify errors and potential issues with their data and software.

Founded in 2017 by Jacob Leverich, Jonathan Trevor, and Ang Lee, Observe launched its first observability product built on Snowflake’s centralized database in 2018. The company was incubated at Sutter Hill Ventures and has since raised nearly $500 million in venture capital from firms including Snowflake Ventures, Sutter Hill Ventures, and Madrona, among others.

Notably, both Snowflake and Observe were incubated at Sutter Hill Ventures, where Sutter Hill managing director Mike Spiser served as Snowflake’s founding CEO from 2012 to 2014.

Jeremy Burton, Observe’s current CEO, has served on Snowflake’s board of directors since 2015.

Integrating Observe into Snowflake allows users to proactively monitor the data stack and identify and fix issues 10 times faster than before, according to a Snowflake blog post — a task made more difficult to scale by the sheer volume of data generated by AI agents.

The acquisition also creates a unified framework for telemetry data, which is collected automatically, based on the Apache Iceberg and OpenTelemetry architectures.

Terms of the deal were not disclosed. According to reports, the deal is worth about $1 billion, making it Snowflake’s largest acquisition to date, surpassing its $800 million purchase in March 2022 of Streamlit, an open source framework that allows developers and data scientists to quickly build and share data applications without requiring front-end development experience.

Observe was most recently valued at $848 million as of July 2025, according to PitchBook data. TechCrunch has reached out to Snowflake for more information about the deal.

Last year saw a wave of consolidation in the data industry as data companies looked to build out their product offerings to make themselves more attractive as integrated partners in the age of AI.

This deal could be a sign that data company consolidation will continue in 2026. Snowflake has been particularly active, completing and announcing several AI-related acquisitions in 2025, including Crunchy Data, Datavolo, and Select Star, a data and metadata management platform that helps organizations understand and track their data at scale.