Overview
- Snowflake signed a definitive agreement on January 8, 2026 to buy Observe, with closing contingent on regulatory approvals and financial terms not disclosed.
- The company plans to fold Observe into the Snowflake AI Data Cloud to ingest, retain, and analyze full‑fidelity telemetry as first‑class data.
- Snowflake says the combined observability architecture will use Apache Iceberg and OpenTelemetry to improve interoperability and cost efficiency.
- Observe was built on Snowflake from inception and reports rapid growth, including tripled revenue, a doubled enterprise customer base, and more than 150 petabytes of processed telemetry.
- Company materials tout an AI Site Reliability Engineer using a unified context graph to accelerate root‑cause analysis, while coverage noted a same‑day Snowflake outage and a roughly 4% stock decline.