Snowflake announced on January 8 that it has entered into a definitive agreement to acquire the observability platform Observe. The agreement is worth an estimated $1 billion. If completed, this would be Snowflake’s largest ever purchase, dwarfing their $800 million acquisition of Streamlit in March 2022. This acquisition, which is subject to regulatory approval, is expected to bring about a televised, one-stop shop for learning, managing and optimizing telemetry data.
Jacob Leverich, Jonathan Trevor and Ang Li started Observe in 2017. Since then, the company has led the industry with its novel approaches to observability and other solutions. While the company released its first product in 2018, they were originally stuck with a Snowflake database in the back end. Since then, Observe has accumulated almost $500 million in venture funding. Prominent firms including Snowflake Ventures, Sutter Hill Ventures, and Madrona participated in this remarkable funding. As of the company’s Series D in July 2025, the company was valued at $848 million.
Observe’s technology will provide unique and differentiated capabilities to Snowflake’s existing portfolio. This integration will provide customers a unified platform in which they can easily aggregate and store telemetry data. This future-proofs users by ensuring they’re empowered to proactively monitor their evolving data stacks. Now they can pinpoint problems up to ten times more quickly! The new framework will be based on cutting-edge, open-source architectures like Apache Iceberg and OpenTelemetry.
Jeremy Burton, the new CEO of Observe And Shaw has a surprising deep link to Snowflake—he’s been on its board of directors since 2015. The acquisition aligns with Snowflake’s recent strategy of expanding its capabilities through several AI-related acquisitions throughout 2025, including the purchases of Crunchy Data, Datavolo, and Select Star.
Industry analysts have speculated that this acquisition could be the first of many, foreshadowing a wave of additional acquisitions and consolidation within the data industry in 2026. Companies such as Snowflake are already leaning heavily on these cutting-edge technologies and services. This innovation is smartly creating a deeper, broader ecosystem to serve their customers.
