Observe Inc., the AI-powered observability company, announced it secured $156 million in a Series C funding round, enabling Observe to continue investing in product development, AI innovation, and global hiring.
As enterprises adapt to a new world where every system, service, and agent generates actionable data, Observe is emerging as the leader in AI-powered observability at cloud scale, the company said.
The funding round was led by Sutter Hill Ventures with participation from Madrona Ventures, Alumni Ventures, Snowflake Ventures, and Capital One Ventures.
Observe has experienced rapid adoption by large enterprises and modern SaaS and AI-native companies, as they seek to replace traditional tools like Splunk, Datadog, and Elasticsearch due to rising costs and increasing complexity at scale.
According to the company, Observe’s growth is driven by three trends:
- The data lake is now home base, and enterprises are moving their telemetry data to the lake for scalability and cost-efficiency.
- Context is the new bottleneck. In modern, distributed environments, collecting data isn’t the challenge; connecting it is.
- AI is changing the troubleshooting workflow, helping teams diagnose and fix root causes faster.
Observe’s platform consists of three core components:
- O11y Data Lake: A highly scalable, low-cost data lake optimized for observability that streams logs, metrics, traces, and events in real-time, using open standards such as OpenTelemetry and Apache Iceberg.
- O11y Knowledge Graph: A real-time contextual model of the user’s entire system, mapping services, resources, users, incidents, and deployments.
- O11y AI SRE: Agentic AI that doesn’t just detect issues, but starts with generating better instrumentation, assisting complex troubleshooting and closing the loop.
“System resilience begins and ends with full-stack observability. It is foundational for AI, provides visibility into resource utilization, and is part of the magic of powering personalized customer experiences,” said Sean Leach, partner, Capital One Ventures. “Observe is executing on a bold vision for modern observability, and we're continuing to invest to fuel their growth as they meet demand.”
For more information about this news, visit www.observeinc.com.