Snowflake to Acquire Observe to Enable Faster Troubleshooting of AI Agents
SnowflakeSnowflake(US:SNOW) PYMNTS.com·2026-01-09 03:14

Core Insights - Snowflake plans to acquire Observe to enhance its AI-driven observability capabilities, focusing on open standards tailored for AI enterprises [1][2] - The acquisition aims to integrate Observe's observability platform with Snowflake's AI Data Cloud, promising to resolve production issues up to 10 times faster than traditional reactive monitoring [3] Group 1 - The definitive agreement for the acquisition has been signed, with the closing subject to customary conditions [2] - The combined solution will provide enterprises with agentic AI for quicker troubleshooting, an open-standard architecture for scalability, and efficient telemetry data retention [3] - Snowflake's CEO emphasized the importance of reliability as a business imperative, stating that the integration will empower customers to manage observability across vast amounts of telemetry data [4] Group 2 - Observe's CEO noted that the merger will accelerate the observability solution at an enterprise scale, addressing the complexities of operating and troubleshooting production systems [4] - The collaboration is expected to deliver faster insights, improved reliability, and better economic efficiency for enterprises running next-generation AI applications [5] - Snowflake's previous acquisition of Crunchy Data in June aimed to enhance its AI capabilities by adding open-source Postgres technology to its AI Data Cloud [6]