> At a Glance
> – Snowflake has signed a definitive agreement to acquire Observe for ~$1 billion
> – Observe’s observability platform was built on Snowflake from day one, launching in 2018
> – The all-stock deal would be Snowflake’s largest, topping its $800M Streamlit buy
> – Why it matters: The move unifies telemetry data storage and monitoring, aiming to help customers spot bugs 10× faster amid AI-driven data surges
Snowflake is doubling down on data observability by acquiring Observe, a startup that has run natively on its cloud since inception. The deal, announced January 8 and subject to regulatory approval, values Observe at roughly $1 billion, according to reports.
Deal Details
Snowflake will fold Observe’s product into its own stack, giving users one hub for logs, metrics, and traces. The combined platform promises to surface software issues in a tenth of the time currently required.
- Target: Observe, founded 2017, raised ~$500M from Sutter Hill, Snowflake Ventures, Madrona
- Last private valuation: $848 million (July 2025, PitchBook)
- Structure: All-stock acquisition; exact terms not disclosed
Both companies share DNA: Sutter Hill Ventures incubated Snowflake and Observe, and Observe CEO Jeremy Burton has sat on Snowflake’s board since 2015.
Market Context
The purchase arrives amid a 2025 buying spree for Snowflake, which already snapped up Crunchy Data, Datavolo, and Select Star. Observe’s tech-rooted in Apache Iceberg and OpenTelemetry-creates a single telemetry layer that scales with AI workloads.
| Acquisition | Year | Reported Value |
|---|---|---|
| Streamlit | 2022 | $800 million |
| Observe | 2026 | ~$1 billion |
Industry watchers see the move as the latest sign that data-platform consolidation will carry into 2026, as vendors race to become one-stop shops for enterprise AI pipelines.
Key Takeaways
- Snowflake’s biggest acquisition to date if approved
- Observe’s native Snowflake architecture removes integration risk
- Unified telemetry aims to curb downtime as AI agents flood systems with data
With regulators reviewing the agreement, Snowflake customers could soon monitor and query their entire data stack without leaving the Snowflake console.
