Snowflake (SNOW) is in advanced discussions to acquire Observe, an AI-native observability startup, for approximately $1 billion. If completed, this deal would represent Snowflake’s largest acquisition to date.
The acquisition would significantly bolster Snowflake’s capabilities in application monitoring and AI-powered infrastructure tools. This strategic push aims to expand Snowflake into full-stack observability, helping enterprise customers accelerate AI workflows.
Observe specializes in helping developers manage telemetry data at scale. The startup already utilizes Snowflake’s database technology, as its platform is built directly on the system.
The potential deal underscores the growing importance of managing data costs associated with observability and security analytics. Snowflake seeks to position itself as an integral observability backbone for its customers. No definitive agreement has been announced.