Observe is an AI-native observability company that ingests and unifies telemetry data — logs, metrics, and traces — into a single, cost-effective data lake. On top of that it layers a knowledge graph and AI-driven workflows so engineers can troubleshoot faster and at lower cost than with legacy tools.
The company explicitly positions itself as a replacement for incumbents like Splunk, Datadog, and Elasticsearch, which it argues have become too expensive and complex at scale. Observe's architecture decouples cheap storage in a data lake from query and analytics, aiming to break the cost curve of high-volume observability.
In July 2025, Observe closed a $156M Series C led by Sutter Hill Ventures, with participation from Madrona Ventures, Alumni Ventures, Snowflake Ventures, and Capital One Ventures. The company reported tripling revenue, doubling its enterprise customer base, and 180% net revenue retention while processing over 150 petabytes of telemetry.
Observe targets large enterprises and modern SaaS and AI-native companies dealing with exploding telemetry volumes. Its AI workflows help correlate signals across the knowledge graph to accelerate root-cause analysis.
With strong backing from Sutter Hill and strategic investors including Snowflake and Capital One, Observe is one of the better-capitalized independent challengers in the observability market.