Observe Raises $156M to Expand AI-Powered Observability Platform

Observe, an AI-native observability platform based in San Mateo, California, has raised $156 million in a Series C funding round led by Sutter Hill Ventures, with participation from Madrona Ventures, Alumni Ventures, Snowflake Ventures, Capital One Ventures, and PagerDuty. The company offers a unified solution that consolidates telemetry data such as logs, metrics, and traces into a single data lake built on Snowflake and open standards, providing a cost-effective alternative to competitors like Datadog and Splunk. Observe's platform leverages AI, including an OpenAI-powered chatbot and an AI SRE component, to automate troubleshooting and accelerate problem resolution for enterprise customers. The startup has shifted focus to serving large-scale enterprises, counting Capital One and Commonwealth Bank among its top clients, and has tripled revenue in the past year with strong customer retention metrics. The new capital will be used to enhance product development, expand AI capabilities, and scale its workforce, particularly in North America. Observe's approach aims to simplify complex system monitoring while reducing costs and avoiding vendor lock-in by allowing customers to own their telemetry data.