Snowflake Announces Intent to Acquire Observe to Deliver AI-Powered Observability at Enterprise Scale

The acquisition will expand Snowflake's capabilities in a $50+ billion IT operations management software market¹, positioning it to deliver next generation AI-powered observability based on open standards

• Observe's leading observability platform will integrate directly into Snowflake, extending the value of the AI Data Cloud to allow enterprises to ingest and retain 100% of their telemetry data at lower cost.
• By combining Observe's AI Site Reliability Engineer (SRE) with Snowflake's high-fidelity data, teams can move from reactive monitoring to proactive, automated troubleshooting, resolving production issues up to 10x faster.
• This move will create a unified, open-standard architecture (based on Apache Iceberg and OpenTelemetry) designed to handle the massive telemetry volumes customers require for next generation AI agents and applications.

Snowflake (NYSE:SNOW), the AI Data Cloud company, today announced it has signed a definitive agreement to acquire Observe, a leader in AI-powered observability. With this acquisition, Snowflake will deliver the next generation of AI-powered observability, built on open standards and designed for the scale, complexity, and economics required by modern AI-driven enterprises.

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Snowflake Announces Intent to Acquire Observe to Deliver AI-Powered Observability at Enterprise Scale

"As our customers build increasingly complex AI agents and data applications, reliability is no longer just an IT metric – it's a business imperative," said Sridhar Ramaswamy, CEO, Snowflake. "By bringing Observe's capabilities directly into the Snowflake AI Data Cloud, we are empowering our customers to manage enterprise-wide observability across terabytes to petabytes of telemetry with an open, scalable architecture and AI-powered troubleshooting workflows."

From its inception, Observe was built on Snowflake and together, Snowflake and Observe will provide enterprises with:

• Agentic AI for faster troubleshooting: The combination of Observe's AI-powered Site Reliability Engineer (SRE) with trusted data in Snowflake enables a shift from reactive monitoring to proactive, automated troubleshooting. Observe's AI SRE leverages a unified context graph that correlates logs, metrics, and traces, allowing teams to detect anomalies earlier, identify root causes faster, and resolve production issues up to ten times faster, improving operational resilience as systems grow more distributed, dynamic, and autonomous.
• An open-standard architecture built for scale: The acquisition also establishes a unified, open-standard observability architecture based on Apache Iceberg and OpenTelemetry, standards which Snowflake has continuously contributed to. This approach allows enterprises to manage massive telemetry volumes using economical object storage, elastic compute, and interoperable standards, an essential foundation for operating next generation AI agents and applications at scale. By treating telemetry as first-class data within the Snowflake AI Data Cloud, enterprises can apply analytics and AI consistently across observability and business data, with greater flexibility, governance, and efficiency.
• Full telemetry data retention with efficient economics: As AI-driven applications generate unprecedented volumes of logs, metrics, and traces, enterprises have increasingly been forced to rely on sampling and short retention windows to manage cost. By unifying Observe's AI-powered observability platform with Snowflake's scalable and trusted data foundation, organizations can eliminate these tradeoffs and retain high-fidelity telemetry data, reducing observability cost substantially while improving visibility across their entire data estate.

"Observability is fundamentally a data problem, and Observe joining Snowflake is a natural extension of their AI Data Cloud, allowing us to accelerate our observability solution at true enterprise scale," said Jeremy Burton, CEO, Observe. "As AI reshapes how applications are built, the bottleneck has shifted from writing code to operating and troubleshooting complex systems in production. Observe was built for this moment. By combining our AI-powered SRE with Snowflake's AI Data Cloud, we can deliver faster insights, greater reliability, and dramatically better economics. Together, we'll help enterprises run the next generation of AI applications and agents with confidence."

"Observability's cost problem stems from treating telemetry as special-purpose data requiring specialized infrastructure. The industry is correcting this by bringing observability data into modern data platforms where it can leverage existing lakehouse economics and AI capabilities. Snowflake's acquisition highlights a critical industry insight: the lines between data platforms and observability platforms are blurring," said Sanjeev Mohan, Principal Analyst, SanjMo.

Upon the closing of this acquisition, Snowflake will deepen its commitment to helping customers build and operate reliable agents and applications. Observe's developer-friendly approach complements Snowflake's existing workload engines by providing teams with real-time enterprise context, faster root-cause analysis, and AI-assisted troubleshooting - critical components for operating dynamic, autonomous systems at scale. Snowflake will also expand its presence in a rapidly growing IT operations management software market. According to Gartner®, "The ITOM software market grew 9.0% in 2024 to reach $51.7B."¹

Closing of the acquisition is subject to receipt of required regulatory approvals and other customary closing conditions.

Forward-Looking Statements

This release relates to a pending acquisition of Observe by Snowflake. This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding the anticipated benefits of the acquisition, and the anticipated impacts of the acquisition on our business, products, financial results, and other aspects of our and Observe's operations. These forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to: the effect of the announcement of the acquisition on the ability of Snowflake or Observe to retain key personnel or maintain relationships with customers, vendors, developers, community members, and other business partners; risks that the acquisition disrupts current plans and operations; the ability of the parties to consummate the acquisition on a timely basis or at all; the satisfaction of the conditions precedent to consummation of the acquisition; our ability to successfully integrate Observe's operations; our and Observe's ability to execute on our business strategies relating to the acquisition and realize expected benefits and synergies; and our ability to compete effectively, including in response to actions our competitors may take following announcement of the acquisition. Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption "Risk Factors" and elsewhere in our Form 10-Q for the fiscal quarter ended October 31, 2025 and subsequent filings and reports we make with the Securities and Exchange Commission from time to time. Moreover, both we and Observe operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the acquisition, or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or our management's good faith belief as of that time with respect to future events. Except as required by law, we undertake no obligation, and do not intend, to update these forward-looking statements to reflect events that occur or circumstances that exist after the date on which they were made.

About Snowflake

Snowflake is the platform for the AI era, making it easy for enterprises to innovate faster and get more value from data. More than 12,600 customers around the globe, including hundreds of the world's largest companies, use Snowflake's AI Data Cloud to build, use and share data, applications and AI. With Snowflake, data and AI are transformative for everyone. Learn more at snowflake.com (NYSE:SNOW).

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Press Contact

Danica Stanczak

Global Corporate Communications, Snowflake

[email protected]