For years, effective observability has been harder than it should be, with data fragmentation, a proliferation of tools and cost as common barriers. Observability is, at its core, a data problem. An organization’s ability to remain resilient is strictly limited by how much data it can afford to ingest, how it navigates the myriad of formats and silos, and the speed at which it can reason across it. 

That’s why, today, we’re excited to announce our intent to acquire Observe, a leader in AI-powered observability. Together, Snowflake and Observe will empower customers to manage enterprise-wide observability across petabytes of telemetry with a modern, scalable architecture, enabling them to run production applications and agents with greater confidence, without sacrificing data to control costs. 

From its inception, Observe was built on Snowflake and together, we’ll provide enterprises with several benefits. The combination of Observe’s AI-powered Site Reliability Engineer (SRE) with trusted data in Snowflake will enable a shift from reactive monitoring to proactive, automated troubleshooting. 

Observe’s AI SRE leverages a unified context graph that correlates logs, metrics, and traces, allowing teams to detect anomalies earlier, identify root causes faster, and resolve production issues up to 10 times faster, improving operational resilience as systems grow more distributed, dynamic, and autonomous.

This acquisition also establishes a unified, open-standard observability architecture based on Apache Iceberg and OpenTelemetry, standards Snowflake has continuously contributed to. We believe this approach will enable enterprises to manage massive telemetry volumes using economical object storage, elastic compute, and interoperable standards, an essential foundation for operating next-generation AI agents and applications at scale. 

By treating telemetry as first-class data within the Snowflake AI Data Cloud, enterprises can apply analytics and AI consistently across observability and business data, with greater flexibility, governance, and efficiency.

Enterprises have increasingly been forced to rely on sampling and short retention windows to manage cost as AI-driven applications generate unprecedented volumes of logs, metrics, and traces. 

By unifying Observe’s AI-powered observability platform with Snowflake’s scalable and trusted data foundation, organizations can eliminate these tradeoffs and retain high-fidelity telemetry data.

With this acquisition, we will be expanding our presence in the rapidly growing IT operations management software market and deepening our commitment to helping customers build and operate reliable agents and applications. 

Observe’s developer-friendly approach will also complement our existing workload engines by providing teams with real-time enterprise context, faster root-cause analysis and AI-assisted troubleshooting — critical components for operating dynamic, autonomous systems at scale. 

We are very excited to be able to help our customers with their observability needs, while bringing our traditional focus on ease of use, high performance and governance.

The closing of the acquisition is subject to receipt of required regulatory approvals and customary closing conditions. 

_{Forward-Looking Statements}

_{This release relates to a pending acquisition of Observe by Snowflake. This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding the anticipated benefits of the acquisition, and the anticipated impacts of the acquisition on our business, products, financial results, and other aspects of our and Observe’s operations. These forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to: the effect of the announcement of the acquisition on the ability of Snowflake or Observe to retain key personnel or maintain relationships with customers, vendors, developers, community members, and other business partners; risks that the acquisition disrupts current plans and operations; the ability of the parties to consummate the acquisition on a timely basis or at all; the satisfaction of the conditions precedent to consummation of the acquisition; our ability to successfully integrate Observe’s operations; our and Observe’s ability to execute on our business strategies relating to the acquisition and realize expected benefits and synergies; and our ability to compete effectively, including in response to actions our competitors may take following announcement of the acquisition. Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Form 10-Q for the fiscal quarter ended October 31, 2025 and subsequent filings and reports we make with the Securities and Exchange Commission from time to time. Moreover, both we and Observe operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the acquisition, or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or our management’s good faith belief as of that time with respect to future events. Except as required by law, we undertake no obligation, and do not intend, to update these forward-looking statements to reflect events that occur or circumstances that exist after the date on which they were made.}