**Snowflake’s Big Bet: Acquiring Observe to Revolutionize Observability**
In a move that’s sending shockwaves through the data and AI communities, Snowflake, a leading cloud knowledge firm, has announced its intention to acquire Observe, an observability platform built on Snowflake’s databases from the ground up. This strategic move is aimed at strengthening Snowflake’s platform and providing customers with a unified hub for collecting and storing telemetry data.
**What’s the Big Deal About Observability?**
In today’s data-driven world, observability platforms have become a vital tool for monitoring software systems and data for performance issues and bugs. With the rise of AI and the massive amounts of data being generated, it’s more crucial than ever for companies to stay on top of potential problems.
**How Will the Acquisition Benefit Snowflake?**
The acquisition of Observe will enable Snowflake to offer its customers a unified framework for telemetry data, which is automatically collected and built on Apache Iceberg and OpenTelemetry architectures. This integration will make it easier for companies to quickly identify and troubleshoot potential issues with their data and software.
**A Strategic Move by Snowflake**
Notably, both Snowflake and Observe have been incubated at Sutter Hill Ventures, with Mike Speiser, the former CEO of Snowflake, and Jeremy Burton, the CEO of Observe, sharing a connection. This entrepreneurial acumen and strategic partnership will undoubtedly benefit Snowflake in the long run.
**The Future of Data Consolidation**
The acquisition could be a sign of more data company consolidation to come in the future. Last year saw a wave of acquisitions as data companies tried to expand their product offerings to become more attractive one-stop-shop partners for AI companies. Snowflake has been particularly active, announcing a series of AI-related acquisitions in 2025.
**The Way Ahead: Consolidation in the Data Trade**
The acquisition reinforces the idea that data company consolidation will continue in 2026. With the rise of AI and the need for companies to manage and analyze their data, this move will likely be a significant one for Snowflake and the industry as a whole.
**Word: The deal is reportedly valued at around $1 billion, surpassing Snowflake’s earlier largest acquisition of Streamlit in March 2022.**
Stay tuned for more updates on this developing story!
