Snowflake plans to acquire Observe, an observability platform that has been built on Snowflake’s database from day one. (Observation platforms help companies monitor software systems and data for performance issues and bugs.)
The cloud data company announced that it has signed a definitive agreement to acquire Observe, according to the regulatory approval, on January 8 Snowflake will integrate the Observe product into itself to give customers a unified place to collect and store telemetry data (logs, metrics, and traces of software systems) and find bugs and potential problems better in data and software.
Observe was founded in 2017 by Jacob Leverich, Jonathan Trevor, and Ang Li and launched its first observation product built on the centralized Snowflake database in 2018. The company was incubated at Sutter Hill Ventures and since then raised nearly $500 million in venture capital from companies including Snowflake Ventures, Sutter Hill Ventures and Madrona, among others.
Notably, Snowflake and Observe were incubated at Sutter Hill Ventures, with Sutter Hill managing director Mike Speiser serving as Snowflake’s founding CEO from 2012 to 2014.
Jeremy Burton, the current CEO of Observe, has served on Snowflake’s board of directors since 2015.
The integration of Observe into Snowflake allows users to proactively monitor their data stack and find and fix problems 10x faster than before, according to a Snowflake blog post – tasks that become more difficult to scale due to the volume of data generated by AI agents.
The acquisition also creates a unified framework for telemetry data, which is collected automatically, built on the Apache Iceberg and OpenTelemetry architectures.
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Terms of the deal were not disclosed. According to reports, the deal is worth around $1 billionwhich will be Snowflake’s largest acquisition to date, surpassing the $800 million purchase in March 2022 of Streamlit, an open-source framework that allows developers and data scientists to quickly build and share data applications without requiring expertise in front-end development.
The latest Observe is valued at $848 million in July 2025, according to PitchBook data. TechCrunch has reached out to Snowflake for more information on the deal.
Last year saw a wave of consolidation in the data industry as data companies look to build out product offerings to make themselves more attractive one-stop-shop partners in the age of AI.
This deal could be a sign that data company consolidation will continue in 2026. Snowflake has been very active, completing and announcing several AI-related acquisitions in 2025, including Crisp data and Datavoloand Select Stara data organization and metadata management platform that helps organizations understand and track data at scale.