Snowflake plans to acquire Observe, an observability platform built on Snowflake’s database from its inception. (Observability platforms help businesses monitor performance issues and bugs in their software systems and data.)
The cloud data company announced on January 8 that it has signed a definitive agreement to acquire Observe, subject to regulatory approval. Snowflake will integrate Observe’s products into its products to provide customers with a unified location to collect and store telemetry data (logs, metrics, and traces from software systems) to better discover potential bugs and issues in their data and software.
Founded in 2017 by Jacob Leverich, Jonathan Trevor, and Ang Li, Observe launched its first observability product built on the centralized Snowflake database in 2018. The company was founded at Sutter Hill Ventures and has since raised approximately $500 million in venture capital from companies such as Snowflake Ventures, Sutter Hill Ventures, and Madrona.
Notably, Snowflake and Observe were both incubated at Sutter Hill Ventures, with Sutter Hill Managing Director Mike Speiser serving as Snowflake’s founding CEO from 2012 to 2014.
Observe’s current CEO, Jeremy Burton, has served on Snowflake’s board of directors since 2015.
By integrating Observe into Snowflake, users will be able to proactively monitor their data stack and identify and remediate issues 10x faster than before, according to a Snowflake blog post. This task is difficult to scale due to the huge amount of data generated by AI agents.
The acquisition also creates a unified framework for automatically collected telemetry data based on Apache Iceberg and OpenTelemetry architectures.
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Terms of the deal were not disclosed. The deal is reportedly worth about $1 billion, making it Snowflake’s largest acquisition to date, surpassing its $800 million acquisition 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 expertise.
Observe’s most recent valuation was $848 million as of July 2025, according to PitchBook data. TechCrunch has reached out to Snowflake for more information on the deal.
Last year saw a wave of consolidation in the data industry as data companies sought to enhance their product offerings to become more attractive one-stop-shop partners in the AI era.
The deal could signal that data company consolidation will continue into 2026. Snowflake has been particularly active, completing and announcing several AI-related acquisitions in 2025, including Crunchy Data, Datavolo, and Select Star, a data governance and metadata management platform that helps organizations understand and track data at scale.
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