Snowflake is poised to enhance its offerings with the acquisition of Observe, a cutting-edge observability platform that has been intrinsically linked to Snowflake’s database infrastructure since its inception.
On January 8, Snowflake, a leading cloud data company, announced it had signed a definitive agreement to acquire Observe, pending regulatory approval. This strategic acquisition aims to streamline and fortify Snowflake’s data management capabilities. By integrating Observe’s advanced observability tools, Snowflake intends to provide its customers with a unified platform for collecting and storing telemetry data, which includes essential logs, metrics, and traces from software systems. This innovation is set to revolutionize how organizations identify and resolve bugs and performance issues within their data frameworks.
Founded in 2017 by tech visionaries Jacob Leverich, Jonathan Trevor, and Ang Li, Observe made its mark with its first product launch in 2018 built specifically on a centralized Snowflake database. Initially incubated at Sutter Hill Ventures, Observe has successfully raised nearly $500 million in venture capital, with prominent investors including Snowflake Ventures, Sutter Hill Ventures, and Madrona. This financial backing underscores the growing importance of observability in today’s tech landscape.
Interestingly, both Snowflake and Observe share roots at Sutter Hill Ventures. Mike Speiser, managing director of the venture firm, was the founding CEO of Snowflake from 2012 to 2014, establishing a pedigree of innovation and collaboration between the two entities. Additionally, Jeremy Burton, Observe’s current CEO, has been a member of Snowflake’s board of directors since 2015, further intertwining their corporate destinies.
The integration of Observe will enable users to monitor their data stacks proactively, allowing them to identify and rectify issues up to ten times faster compared to traditional methods. This speed is crucial as the rise of artificial intelligence has led to an exponential increase in the volume of data generated, making error detection and resolution a daunting task for many organizations.
A key feature of this acquisition is the establishment of a cohesive framework for telemetry data collection. Built on robust architectures like Apache Iceberg and OpenTelemetry, Snowflake and Observe will deliver automatic data capture processes, simplifying the operational workload for IT teams and developers alike.
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While the terms of the deal remain undisclosed, reports suggest that the acquisition is valued at approximately $1 billion. If confirmed, this would mark Snowflake’s largest acquisition to date, eclipsing its previous $800 million purchase of Streamlit, an open-source framework that enables developers and data scientists to efficiently build and share data applications.
As of July 2025, Observe was valued at around $750 million, reflecting a robust market confidence in its capabilities. The interest surrounding this deal continues to garner attention, with TechCrunch reaching out to Snowflake for further insights into the acquisition’s implications.
The past year witnessed a significant trend of consolidation within the data industry, as companies aggressively sought to expand their product offerings and attract partnership opportunities amid the AI revolution. This acquisition appears to be a strong indicator that such consolidation will persist well into 2026.
Snowflake has maintained a proactive acquisition strategy, actively pursuing companies with AI-related technologies. In the previous year, it completed several noteworthy acquisitions, including Crunchy Data, Datavolo, and Select Star, which is a platform focused on data governance and metadata management, helping organizations better understand their data landscapes.
This article has been updated to provide a more accurate valuation for Observe.
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