Snowflake in Talks to Acquire Observe in $1B AI Observability Deal

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Snowflake is reportedly in talks to acquire observability startup Observe for roughly $1 billion, a move that would significantly expand Snowflake’s artificial intelligence and application monitoring capabilities.

According to reporting from The Information, the deal would bring Observe’s observability tools — used to monitor applications, including AI workloads — into Snowflake’s growing product portfolio, which already spans cloud data infrastructure, AI-powered analytics, and enterprise automation.

Snowflake AI platform expansion and observability strategy

Why Observe Fits Snowflake’s AI Strategy

Observe specializes in observability — software that helps organizations monitor the performance, security, and reliability of applications. As AI systems move into production environments, observability has become a critical requirement for enterprises managing complex, data-heavy workloads.

The two companies already have close ties. Observe runs on Snowflake’s database platform, Snowflake’s venture arm invested in Observe in 2024, and Observe CEO Jeremy Burton currently serves on Snowflake’s board of directors.

AI observability dashboards and enterprise monitoring

Observability Becomes Core Infrastructure for AI

Snowflake has been steadily building an end-to-end AI data platform. In March 2024, the company said its investment in Observe would expand observability features for Snowflake customers, enabling faster troubleshooting, improved visibility, and more reliable application performance.

That strategy continued in May 2024, when Snowflake acquired TruEra, an AI observability platform focused on monitoring large language models and machine learning systems in production. At the time, Snowflake said the move would strengthen its ability to ensure AI quality, reliability, and trust.

A Broader Push Beyond Data Warehousing

The reported Observe acquisition would follow a string of recent deals as Snowflake moves beyond its roots as a cloud data warehouse. In November, the company announced agreements to acquire metadata platform Select Star and technology powering Datometry’s database migration tools.

Taken together, the moves signal Snowflake’s ambition to become a full-stack AI data cloud — one that not only stores and analyzes data, but also helps enterprises monitor, govern, and trust the AI systems built on top of it.

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