Snowflake agrees to buy AI observability company Observe

Snowflake signed a definitive agreement to acquire Observe, an AI-powered observability company whose platform was built on Snowflake from the start. The deal brings logs, metrics and traces into the AI Data Cloud, where customers can keep full telemetry data at lower cost. Financial terms were not disclosed and closing is subject to regulatory approval.

• Definitive agreement announced January 8, 2026; price not disclosed
• Observe's AI Site Reliability Engineer is the centrepiece, which Snowflake says can resolve production issues up to 10x faster
• Customers can keep 100% of telemetry data instead of sampling it, on Apache Iceberg and OpenTelemetry
• Opens a separate IT operations budget that sits outside the data platform spend