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Snowflake Announces Plan to Acquire Observe for AI-Powered Observability

The pending deal would bring Observe’s telemetry platform into Snowflake’s AI Data Cloud using open standards for long-term, full-fidelity data.

Overview

  • Snowflake announced plans to buy Observe, with the transaction still subject to regulatory approvals and customary closing conditions.
  • The combined platform is intended to correlate logs, metrics, and traces at scale and enable proactive, automated troubleshooting via Observe’s AI Site Reliability Engineer, which Snowflake says can speed resolution up to 10 times.
  • Observe was built on Snowflake’s infrastructure, and the integration is expected to use Apache Iceberg and OpenTelemetry to handle massive telemetry volumes more economically.
  • Financial terms were not disclosed, though prior reports suggested a price near $1 billion that has not been confirmed by the companies.
  • Snowflake positions the move as an expansion into the IT operations management market and cautions about risks related to integration, retention of personnel and partners, and regulatory review.