Snowflake plans to acquire Observe, an observability platform that has been built on Snowflake’s databases since day one. (Observability platforms help companies monitor their software systems and data for performance issues and errors.)
The cloud data company announced it had signed a definitive agreement to acquire Observe, subject to regulatory approval, on January 8. Snowflake will integrate Observe’s product into its own to provide customers with a single place to collect and store their telemetry data (logging, measurements and traces from software systems) and better identify potential errors and problems in their data and software.
Observe was founded in 2017 by Jacob Leverich, Jonathan Trevor and Ang Li and released its first observability product based on a centralized Snowflake database in 2018. The company was founded at Sutter Hill Ventures and has since raised nearly $500 million in venture capital from companies such as Sutterfl Ventures, Madon. others.
Notably, both Snowflake and Observe were incubated at Sutter Hill Ventures, with Sutter Hill CEO Mike Speiser serving as Snowflake’s founding CEO from 2012 to 2014.
Jeremy Barton, the current CEO of Observe, has been a member of Snowflake’s board since 2015.
Observ’s integration with Snowflake enables users to proactively monitor their data stack and identify and fix issues 10x faster than before, according to Snowflake blog post — a task that has become more difficult to scale due to the sheer volume of data generated by AI agents.
The acquisition also creates a single 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 valued at approx 1 billion dollarsthat would make it Snowflake’s largest acquisition to date, surpassing the March 2022 $800 million purchase of Streamlit, an open-source framework that allows developers and data scientists to quickly build and share data applications without the need for front-end development expertise.
Observe was most recently valued at $750 million in July 2025, according to the company. 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 develop their product offerings to become more attractive one-stop-shop partners in the age of artificial intelligence.
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 and Datavolo, and Select Stara data management and metadata management platform that helps organizations understand and explore their data at scale.
This piece had been updated with a more accurate valuation for Observe.
