Snowflake Plans to Acquire Observe, Advancing Its AI Data Cloud Technology

The deal will integrate Observe’s AI-powered site reliability engineer into Snowflake’s data cloud.

Written by Ashley Bowden
Published on Jan. 08, 2026
Cloud data depiction
Photo: Shutterstock
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Rose Velazquez | Jan 08, 2026

Cloud data company Snowflake announced its plans to acquire Observe, a California-based provider of AI-powered observability solutions. Snowflake, which operates a global network that helps organizations unite disparate data, will tie Observe’s site reliability engineer into its AI high-fidelity data cloud.

The acquisition enables Snowflake to significantly expand its capabilities within the IT operations management software sector. Following the deal, the company will equip enterprises with troubleshooting solutions powered by agentic AI, a scalable open-standard architecture and full telemetry data retention.

The combined platform will enable enterprise teams to focus on proactive, automated troubleshooting and expedite the resolution of production issues. Upon the acquisition’s close, Snowflake plans to further its work toward helping companies build and operate reliable agents and applications.

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

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