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Snowflake Acquires Observe: Data Observability Gets Unified
8 Jan
Summary
- Snowflake is acquiring observability platform Observe for about $1 billion.
- The acquisition aims to unify telemetry data collection and analysis.
- This deal strengthens Snowflake's position in the AI data market.
Snowflake has signed a definitive agreement to acquire Observe, a prominent observability platform, in a deal reportedly valued around $1 billion. This acquisition, announced on January 8, 2026, subject to regulatory approval, signifies a major step in Snowflake's strategy to consolidate data management and monitoring capabilities. Observe, founded in 2017, has specialized in providing software insights using Snowflake's database infrastructure from its inception.
The integration of Observe into Snowflake's ecosystem is designed to offer customers a singular platform for their telemetry data, encompassing logs, metrics, and traces. This unified approach is crucial for proactively identifying and rectifying issues within complex data stacks, a challenge amplified by the vast data generated by AI agents. Observe's existing infrastructure, built on Apache Iceberg and OpenTelemetry, aligns with Snowflake's architectural direction.
This acquisition marks Snowflake's largest to date, surpassing its purchase of Streamlit in March 2022. It underscores a broader trend of consolidation within the data industry as companies strive to become comprehensive solutions in the age of AI. Snowflake has been actively pursuing AI-related acquisitions, further solidifying its market position.
