Snowflake acquires Observe AI Inc. to strengthen its position in observability.
Snowflake confirms in a blog that it is acquiring Observe. According to rumors that surfaced last month, the company is estimated to be worth approximately one billion dollars.
Focus on AI workflows
Observe helps companies monitor applications and infrastructure through large-scale analysis of telemetry data. This includes slow applications, websites that crash, and other technical issues. Snowflake is particularly interested in AI SRE, a chatbot that identifies the problems. With the acquisition, Snowflake aims to expand its offering towards full-stack observability, a domain that is becoming increasingly important in complex AI and cloud environments.
Snowflake has long positioned itself as a central data hub for analytics, data engineering, and AI. By adding Observe, it can better support customers in managing and optimizing AI workflows.
Financial growth
Snowflake has grown strongly in revenue over the past three years but remains loss-making due to high investments. With a market value of approximately 77 billion dollars, the company has sufficient scale to make targeted acquisitions, although investors are critically monitoring profitability.
This article originally appeared on December 24, 2025, and was updated on January 9, 2026, with the latest information.