Snowflake acquires Observe for 1.4 trillion KRW… Accelerating data problem solving with AI

2026-01-08 22:11:06

Snowflake(SNOW) further strengthens its data troubleshooting capabilities through the acquisition of Observe, a startup specializing in AI-based observability platforms. This acquisition is part of a strategic effort to enhance operational stability for enterprise customers, with plans to integrate Observe’s technology into Snowflake’s cloud data platform.

Snowflake is particularly focused on Observe’s core observability technology, AI SRE. This technology helps developers quickly identify the root causes of system failures or performance issues through AI chatbots. For example, users can instruct the chatbot to analyze only error logs from the past 24 hours, and the AI will infer the root cause based on this data. The system is built on Observe’s data management engine called “O11y Context Graph.” This engine collects hundreds of terabytes of data daily from customer systems and processes it into indexed and cached query results, significantly improving retrieval speed.

The Observe platform can run directly on Snowflake, allowing both companies’ customers to store and analyze observability data for longer periods than before. Previously, due to storage costs, enterprises often deleted telemetry data after a few days or weeks. This integration enables long-term data retention and more precise root cause analysis.

Christian Kleineman, Vice President of Snowflake’s product division, stated, “The scale of data collection and operational efficiency have become key standards for measuring enterprise resilience. The combination of these two technologies will help customers manage petabyte-scale telemetry data with a modern, scalable architecture while effectively controlling infrastructure costs.”

This acquisition of Observe is Snowflake’s second strategic merger since acquiring database migration solutions company Datomic in November last year. Previously, Datomic gained attention for developing technology that can migrate data from competing databases to Snowflake, as well as for its open-source relational database OpenDB.

Unofficial estimates value Observe at approximately $10 billion (about 1.44 trillion Korean won), which is 2.5 times the total amount of its previous investments. This reflects the rapid rise in market value of AI and cloud-based data operations technology industries.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.