Snowflake signed a definitive agreement to acquire Observe, a leader in AI-powered observability. This strategic acquisition positions Snowflake to enter the IT operations management software market, valued at over $50 billion.

Snowflake plans to integrate Observe’s capabilities directly into the Snowflake AI Data Cloud. This integration aims to deliver a new generation of AI-powered observability built on open standards.

The combined platform will empower customers to manage massive telemetry volumes more economically. Furthermore, the integration allows teams to shift from reactive monitoring to proactive, automated troubleshooting. This change is expected to resolve production issues up to 10 times faster, supporting enterprises operating complex AI agents and data applications.