Snowflake has agreed to acquire Observe, a company specialising in AI-powered observability, as part of its strategy to enhance its AI Data Cloud offering.

The transaction, which is subject to regulatory approval and customary closing conditions, is expected to enable Snowflake to integrate Observe’s platform directly into its existing infrastructure.

This move aims to help enterprises manage and retain large volumes of telemetry data while supporting the shift towards proactive, automated troubleshooting.

By adding Observe’s technology, Snowflake intends to offer a unified observability architecture built on open standards such as Apache Iceberg and OpenTelemetry.

This integration will allow organisations to store, process, and analyse vast amounts of logs, metrics, and traces using object storage and elastic compute resources.

Enterprises will be able to apply analytics and AI tools across both observability and business data within the Snowflake AI Data Cloud environment.

Observe’s Site Reliability Engineer (SRE), which uses AI to correlate various telemetry sources for earlier anomaly detection and root cause identification, will become available through Snowflake following completion of the acquisition.

According to the companies, this combination is designed to move teams away from reactive monitoring models by enabling real-time analysis of system performance and production issues.

Observe CEO Jeremy Burton said: “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.”

With the addition of Observe’s platform, Snowflake expects customers to reduce costs associated with sampling or short-term telemetry retention by providing more comprehensive coverage of system data.

Snowflake aims to support businesses operating complex, distributed systems at scale as they deploy next generation AI agents and applications.

Snowflake CEO Sridhar Ramaswamy said: “As our customers build increasingly complex AI agents and data applications, reliability is no longer just an IT metric – it’s a business imperative.

“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.” 

Observe initially built its platform on Snowflake’s infrastructure, which the joint solution will now extend further.

Upon closing, Snowflake plans to maintain its focus on reliability, governance, and operational efficiency for enterprise clients.