Snowflake announces intention to acquire Observe to deliver AI-powered observability at enterprise scale

Snowflake Observe AI Observability is in focus as Snowflake announces that the company has signed a definitive agreement to acquire Observe. The acquisition strengthens Snowflakes AI Data Cloud and marks a clear step towards next-generation AI-driven observability at enterprise scale built for the complexity, reliability and economics that modern AI-driven organizations demand.

Snowflake Observe AI observability at enterprise scale

The deal positions Snowflake more strongly in the IT operations management and observability market, where reliable operations are no longer a technical enablement but a business-critical requirement. The combination of Snowflake's data platform and Observe's observation solution enables companies to manage very large amounts of telemetry data without compromising cost or performance.

Observe is built directly on Snowflake from the start and the integration means that organizations can store, analyze and retain one hundred percent of their logs, metrics and traces. By treating telemetry as first-class data in the Snowflake AI Data Cloud companies can use analytics and AI consistently across both business and operational data with higher precision, better governance, and improved cost efficiency.

How Snowflake Observe AI strengthens observability in modern AI systems

A central part of Snowflake Observe AI Observability is the combination of Observe's AI-powered Site Reliability Engineer and Snowflake's high-quality data. This enables IT and DevOps teams Moving from reactive monitoring to proactive automated troubleshooting. Using a common context graph that correlates logs, metrics, and traces, teams can detect anomalies earlier, identify root causes faster, and resolve production issues up to ten times faster, strengthening operational resilience in increasingly distributed and autonomous systems.

The acquisition also establishes a unified architecture with open standards based on Apache Iceberg and OpenTelemetry. The open architecture is designed to handle very large telemetry volumes using object storage, elastic computing, and interoperable standards. This creates a scalable foundation for next-generation AI agents and enterprise-scale applications where observability is an integral part of the platform and not a standalone tool.

Sridhar Ramaswamy CEO of Snowflake emphasizes that reliability is no longer just an IT metric but a business requirement. As customers build increasingly advanced AI agents and data applications, stable operation becomes critical to business success. By integrating Observe’s capabilities directly into Snowflakes AI Cloud computing enables customers to manage Snowflake Observe AI observability across the entire organization from terabyte to petabyte scale with AI-assisted workflows.

Jeremy Burton CEO of Observe describes observability as a fundamental data problem. Becoming part of Snowflake, he says, is a natural progression that will allow Observe to accelerate its observability solution at true enterprise scale. As AI transforms how applications are built, the bottleneck has shifted from code development to operational debugging and reliability in production. The combination of Observes AI-powered SRE and Snowflakes AI Data Cloud provides faster insights, higher reliability and significantly better economics.

The analyst Sanjeev Mohan from SanjMo points out that Snowflakes Acquisitions reflect a broader industry shift where the boundaries between data platforms and observation platforms are blurring. Telemetry data is increasingly treated as core data in modern data platforms where existing financial functions and AI capabilities can be fully utilized, changing how companies build and operate their IT environments.

After the acquisition is completed, Snowflake to deepen its commitment to helping customers build and operate reliable AI applications and autonomous systems. Observe's developer-friendly approach complements Snowflake's existing workload engines by providing real-time context, faster root cause analysis, and AI assisted troubleshooting. The investment also strengthens Snowflake's presence in the IT operations management market, which according to Gartner continues to grow rapidly and passed $50 billion in 2024.

With Snowflake Observe AI observability, Snowflake takes a clear step towards unifying data, AI, and operations in a common platform and lays the foundation for the next generation of companies where observability is a natural part of the business strategy.