Snowflake moves to acquire AI observability firm Observe - AI News Today Recency

Snowflake’s announcement that it will acquire AI observability startup Observe for a reported **$1 billion** has drawn a mixed reaction from users and investors, with several Snowflake customers on X praising the move as “*long overdue consolidation of telemetry on the data cloud*” and one enterprise architect writing that it could “*finally kill our Frankenstein stack of five different monitoring tools*.”[3][6] At the same time, some retail investors on Reddit’s r/stocks have voiced concern about Snowflake “overpaying for growth” given that its shares are trading about **17% below** their 52‑week high and the company is still not GAAP-profitable, with one popular

Snowflake’s planned purchase of AI observability firm Observe will require **regulatory clearance**, with the company stating that closing is “subject to receipt of required regulatory approvals and other customary closing conditions,” a standard review that typically involves the U.S. Department of Justice or Federal Trade Commission for antitrust and securities regulators for disclosure compliance.[1] No specific agency has yet publicly raised objections or requested remedies, and Snowflake characterized forward-looking statements about the deal as being subject to risks including “the ability of the parties to consummate the acquisition on a timely basis or at all,” signaling that regulatory review remains a key uncertainty.[1]

U.S. and international regulators are expected to review Snowflake’s planned acquisition of **Observe** under standard merger-control and antitrust processes, with Snowflake explicitly warning investors that closing is “subject to receipt of required regulatory approvals and other customary closing conditions.”[5][6] While no agency has yet announced a formal investigation or remedy demand, the deal’s AI-observability focus and Snowflake’s growing string of AI-related buys in 2024–2026 are drawing scrutiny from competition lawyers who say enforcers are increasingly probing whether data and monitoring platforms create “gatekeeper” power in cloud and AI infrastructure markets.[1][2][5]

Snowflake confirmed it has **signed a definitive agreement to acquire AI observability platform Observe**, in a deal reported to be worth **around $1 billion**, which would surpass its $800 million Streamlit purchase as the company’s largest acquisition to date.[2][6] Snowflake CEO Sridhar Ramaswamy framed the move as core to its AI strategy, saying “**reliability is no longer just an IT metric – it’s a business imperative**,” as the company promises customers AI-assisted troubleshooting “**up to 10x faster**” by combining Observe’s AI Site Reliability Engineer with Snowflake’s data cloud.[3][5]

Snowflake’s planned acquisition of **Observe** is a deep technical bet on treating telemetry—logs, metrics, and traces—as **first‑class data** inside the Snowflake AI Data Cloud, with a unified architecture built on **Apache Iceberg and OpenTelemetry** to manage terabytes-to-petabytes of observability data without heavy sampling.[3][5][7] By fusing Observe’s AI **Site Reliability Engineer**, which uses a unified context graph to correlate signals, with Snowflake’s high‑fidelity data, the companies claim teams will move from reactive monitoring to proactive, automated troubleshooting and resolve production issues “**up to 10x faster**,” a shift that could materially change how

**Snowflake announced today it has signed a definitive agreement to acquire Observe, an AI-powered observability platform, in what reports value at approximately $1 billion—making it Snowflake's largest acquisition to date and surpassing its $800 million purchase of Streamlit in March 2022.[2]** The deal positions Snowflake to expand into the $50+ billion IT operations management software market, with the integrated platform enabling enterprises to ingest and retain 100% of their telemetry data while resolving production issues up to 10x faster through AI-assisted troubleshooting.[2][4][5] The acquisition, which requires regulatory approval to close, reflects

Snowflake’s planned acquisition of **Observe** effectively turns telemetry into “**first-class data**” inside the Snowflake AI Data Cloud, with a unified architecture built on **Apache Iceberg** and **OpenTelemetry** that lets enterprises ingest and retain **100% of their logs, metrics, and traces** instead of relying on sampling or short retention windows.[4][6] Technically, Snowflake is fusing Observe’s **AI Site Reliability Engineer**, which uses a unified context graph to correlate telemetry, with Snowflake’s high‑fidelity data so teams can move from reactive monitoring to proactive, automated troubleshooting and resolve production issues “**up to 10x faster**,” a capability Snowflake

Snowflake's acquisition of Observe marks a significant consolidation in the $50+ billion IT operations management software market, positioning the data company to compete more directly with standalone observability platforms[4]. The deal—reportedly valued near $1 billion—would be Snowflake's largest acquisition to date, surpassing its $800 million purchase of Streamlit in 2022, and reflects continued data industry consolidation as companies build comprehensive AI-focused product portfolios[3]. CEO Sridhar Ramaswamy emphasized the strategic importance, stating: "As our customers build increasingly complex AI agents and data applications, reliability is no longer just an IT metric—it's a business imperative,"[

Snowflake’s move to acquire **Observe** pushes it directly into the **$50+ billion IT operations management and observability market**, intensifying pressure on incumbents like Datadog, Dynatrace, New Relic and Elastic that currently monetize centralized telemetry and AIOps at scale.[1][7] By pulling Observe’s AI-powered SRE and telemetry stack (logs, metrics, traces from **terabytes to petabytes** of data) natively into the Snowflake AI Data Cloud, CEO Sridhar Ramaswamy is positioning Snowflake as a **full-stack data + observability platform**, a consolidation play that could shift buyers away from standalone observability tools toward “one-stop

Snowflake has signed a **definitive agreement** to acquire AI observability startup **Observe**, in what is expected to be its **largest deal to date**, with talks reportedly valuing the transaction at **around $1 billion**, above the $800 million it paid for Streamlit in 2022.[2][3] Snowflake CEO Sridhar Ramaswamy said “reliability is no longer just an IT metric — it’s a business imperative,” as the company moves to integrate Observe’s AI Site Reliability Engineer into the Snowflake AI Data Cloud to help customers troubleshoot issues **up to 10x faster** across terabytes to petabytes of telemetry data.[1][5][

Snowflake’s move to acquire Observe is a deep technical bet on making **telemetry “first‑class data” inside the Snowflake AI Data Cloud**, with a unified architecture built on **Apache Iceberg and OpenTelemetry** so customers can store and query 100% of logs, metrics, and traces instead of relying on sampling or short retention windows.[1][6] By wiring Observe’s **AI Site Reliability Engineer**, which uses a unified context graph to correlate telemetry, directly into Snowflake’s engines, the company claims teams will shift from reactive dashboards to **proactive, automated troubleshooting up to “10x faster” across terabytes–petabytes of telemetry**, a move that effectively turns Snowflake

Snowflake shares **fell about 3% in afternoon trading**, underperforming the broader tech sector, after the company announced its intent to acquire AI observability firm Observe.[6] Traders cited the lack of disclosed deal terms and concerns about Snowflake’s expanding M&A bill, with one analyst note warning that “investors will want clearer evidence of revenue synergies before rewarding yet another billion‑dollar-plus bet,” even as the company highlighted a $50+ billion IT operations management software market opportunity.[3][6]

Snowflake’s move to acquire AI observability specialist Observe is being described by analysts as a “direct challenge to Datadog, Dynatrace and New Relic,” effectively pulling observability workloads and their telemetry spend back into the data warehouse layer.[5][6] Industry watcher Constellation Research says the deal “treats telemetry as **first‑class data**” and could reshape the $50+ billion IT operations management market by letting enterprises keep *all* logs, metrics and traces in Snowflake instead of using sampling, a shift observers call “as much a monetization play as a technology one.”[5][7][8]

Snowflake’s move to acquire **Observe** will fold Observe’s AI Site Reliability Engineer and unified context graph directly into the Snowflake AI Data Cloud, letting customers correlate logs, metrics, and traces on a single Apache Iceberg/OpenTelemetry-based architecture across **terabytes to petabytes of telemetry data** without sampling.[1][4][6][8] CEO Sridhar Ramaswamy said this will shift teams “from reactive monitoring to proactive, automated troubleshooting,” with Snowflake claiming up to **10x faster** resolution of production issues and a direct play into the **$51.7 billion IT operations management software market**.[1][5][6]

**Snowflake stock fell 3% following the company's announcement of its intent to acquire Observe**, an AI-powered observability startup[6]. The acquisition, reportedly valued at around $1 billion, marks Snowflake's largest deal to date, surpassing its $800 million purchase of Streamlit in March 2022, and signals continued consolidation in the data industry as companies build out AI capabilities[3][8]. Observe CEO Jeremy Burton emphasized that "observability is fundamentally a data problem," underscoring the strategic fit between the two companies[6].