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Observe, Inc.

Category: AI Infrastructure

Observe is a SaaS observability platform that reinvents how machine-generated data is stored, managed, and analyzed. Observe, Inc. was founded in 2017. The company is led by Jeremy Burton. Based in San Mateo, California, United States. Team size: 201-500. Total funding raised: $393M. Latest round: Acquired. Key investors include Sutter Hill Ventures, Madrona Ventures, Capital One Ventures, Snowflake Ventures, Alumni Ventures.

AMW Analysis

Snowflake's ~$1B agreement to acquire Observe, first reported as talks in late 2025 and confirmed as an active deal by early 2026, marks the defining development in the company's trajectory. Observe operates a SaaS observability platform built on a data lake architecture, offering a unified system for storing, managing, and analyzing machine-generated data to help teams troubleshoot distributed applications faster and more cheaply. Since its 2017 founding in San Mateo, the company raised roughly $393-470M in venture funding across rounds through Series C, backed by investors including Sutter Hill Ventures, Madrona Ventures, Capital One Ventures, Snowflake Ventures, and Alumni Ventures — notably with Snowflake itself already among its investors prior to the acquisition talks.

The reported deal terms emphasize that Observe was natively built on Snowflake's architecture, which the companies say allows the two systems to integrate without data silos and is expected to reduce observability costs substantially. News coverage frames the transaction as Snowflake's 19th acquisition and as part of a broader consolidation trend in which data-platform companies are extending into adjacent AI infrastructure and monitoring capabilities, targeting a large addressable market for observability and telemetry services.

AMW analysis, generated from 3 tracked news signals.

Founded
2017
Headquarters
San Mateo, California, United States
Team size
201-500
Total funding
$393M

Value proposition

Provides a single, unified platform to troubleshoot modern distributed applications faster and at a lower cost by leveraging a data lake architecture.

Products and solutions

Observe by Snowflake (Observability Cloud), AI SRE (agentic troubleshooting), O11y Data Lake / Telemetry Lakehouse, O11y Knowledge Graph / Observability Context Graph, o11y.ai agents, Frontend Observability, APM (OpenTelemetry-native), Infrastructure Monitoring, LLM Observability, Log Management

Unique value

Observe's unique approach lies in its architecture. Instead of relying on traditional, siloed data stores for logs, metrics, and traces, it uses a single, consolidated data lake. This allows for more efficient data management and correlation, enabling users to ask more complex questions of their data.

Target customer

Developers, DevOps, and SREs (Site Reliability Engineers) responsible for troubleshooting and maintaining complex applications.

Industries served

Software/SaaS, Financial Services, E-commerce, Telecommunications

Technology advantage

The core technological advantage is building their platform on top of Snowflake's cloud data platform. This allows Observe to handle massive volumes of data with high performance and scalability, without having to build and maintain its own data infrastructure. This also provides a significant time-to-market advantage and allows them to focus on innovation in the observability space.

How they differentiate

Observe differentiates itself by leveraging a modern data architecture built on top of the Snowflake Data Cloud. This allows them to handle massive volumes of machine-generated data more efficiently and cost-effectively than legacy competitors. Their core innovation is the 'O11y Data Graph,' which dynamically discovers relationships between datasets, enabling faster troubleshooting and root cause analysis. They also heavily focus on AI-powered features, such as AI Investigator and O11y AI SRE, to automate and simplify complex investigations.

Main competitors

Datadog, Splunk, New Relic

Key partnerships

Snowflake (acquirer, Feb 2026; prior investor and native platform partner), OpenTelemetry / Apache Iceberg ecosystem

Notable customers

Capital One, Commonwealth Bank of Australia, Topgolf, Reveal, Tekion, Dialpad, mParticle, Truveta, Breeze Airways, Avid

Major milestones

Founded/incubated by Sutter Hill Ventures in 2017; commercial launch Oct 2020., Series B $115M (Mar 2024) led by Sutter Hill with Snowflake Ventures; Series B cumulative $145M announced Sep 2024., Series C $156M (Jul 2025) led by Sutter Hill; tripled revenue, 180% NRR., Launched Frontend Observability (Mar 2025); AI SRE and o11y.ai agents (Nov 2025)., #38 on 2025 Deloitte Technology Fast 500 (Nov 2025)., Snowflake announced intent to acquire Observe Jan 8 2026; acquisition closed February 2026 (~$1B); product rebranded Observe by Snowflake.

Growth metrics

As of September 2024, the company serves nearly 100 enterprise customers and has reported processing over 1 petabyte of data per day for a single customer.

Market positioning

Observe by Snowflake: AI-powered observability product within Snowflake's AI Data Cloud after the ~$1B acquisition (closed Feb 2026). Targets enterprise DevOps/SRE vs Datadog, Splunk, New Relic with lakehouse economics (Iceberg/OTel), Context Graph, and AI SRE. Available standalone or with Snowflake credits.

Geographic focus

While Observe serves a global customer base, its primary market focus appears to be North America, with notable enterprise customers in the US and Australia. The company is headquartered in San Mateo, California.

Patents and IP

Observe has filed for 2 patents, though the specific details are not publicly available.

About Jeremy Burton

Veteran enterprise software executive. Formerly the Chief Marketing Officer at Dell Technologies and President of Products and Marketing at EMC. Also serves as a board member for Snowflake.

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