Snowflake to Acquire Observe to Enable Faster Troubleshooting of AI Agents

Snowflake plans to acquire Observe to deliver artificial intelligence-powered observability that is built on open standards and designed for the requirements of AI-driven enterprises.

The companies signed a definitive agreement for the acquisition, though the closing of the transaction is subject to customary closing conditions, Snowflake said in a Thursday (Jan. 8) press release.

Upon the closing of the acquisition, Observe’s observability platform will be integrated with Snowflake’s AI Data Cloud, enabling enterprises to resolve production issues up to 10 times faster than they can with reactive monitoring, according to the release.

The combined solution will offer enterprises agentic AI for faster troubleshooting, an open-standard architecture that is built for scale, and full telemetry data retention with efficient economics, per the release.

“As our customers build increasingly complex AI agents and data applications, reliability is no longer just an IT metric — it’s a business imperative,” Snowflake CEO Sridhar Ramaswamy said in the release. “By bringing Observe’s capabilities directly into the Snowflake AI Data Cloud, we are empowering our customers to manage enterprise-wide observability across terabytes to petabytes of telemetry with an open, scalable architecture and AI-powered troubleshooting workflows.”

Observe CEO Jeremy Burton said in the release that the combination of the two companies will be a natural extension of Snowflake’s AI Data Cloud, will allow Observe to accelerate its observability solution at enterprise scale, and will meet the demands of operating and troubleshooting complex systems in production.

“By combining our AI-powered SRE [Site Reliability Engineer] with Snowflake’s AI Data Cloud, we can deliver faster insights, greater reliability and dramatically better economics,” Burton said. “Together, we’ll help enterprises run the next generation of AI applications and agents with confidence.”

It was reported in December that Snowflake was in talks to acquire Observe to expand its range of AI offerings.

Snowflake announced in June that it was acquiring Crunchy Data to enhance its ability to help enterprises build and deploy AI agents and applications. The company said that acquisition would add Crunchy Data’s open-source Postgres technology and products to Snowflake’s AI Data Cloud, enabling those who use PostgreSQL to ship faster and operate more efficiently.