Observe Raises $156 Million to Accelerate AI-Driven Observability and Data Lake Innovation

Observe raised $156M in Series C funding to advance product development and AI. Its platform boosts scalability and cuts costs by moving telemetry data to data lakes.

Categorized in: AI News Product Development
Published on: Aug 01, 2025
Observe Raises $156 Million to Accelerate AI-Driven Observability and Data Lake Innovation

Observe Raises $156 Million in Series C to Boost Product Development and AI

Observe, a platform focused on observability and infrastructure monitoring, has secured $156 million in Series C funding. The round was led by Sutter Hill Ventures and included investments from Madrona Ventures, Alumni Ventures, Snowflake Ventures, and Capital One Ventures.

This influx of capital will fuel further product development, AI innovation, and global hiring efforts as Observe expands its footprint.

Why Observe’s Platform Is Gaining Traction

Recently, Observe has tripled its monthly active users. One key factor behind this growth is the increasing adoption of data lakes by enterprises. Observe’s platform enables organizations to move telemetry data to data lakes, improving scalability and reducing costs.

The Observability Cloud platform ingests logs, metrics, and traces using OpenTelemetry and stores data in the open Apache Iceberg format. This approach eliminates vendor lock-in associated with proprietary formats, giving customers full ownership of their telemetry data.

AI Enhances Troubleshooting Efficiency

AI is transforming how teams identify and resolve issues. With systems growing more complex and data volumes rising, AI makes it easier for users to query their data and quickly pinpoint problems.

Observe views observability fundamentally as a data challenge. The platform refines and normalizes raw telemetry—collected from sources like Kubernetes, MongoDB, Snowflake, and various applications—to make it actionable for troubleshooting.

How Observe Works

  • Customers deploy Observe agents to collect telemetry data from infrastructure, databases, and applications.
  • The platform processes time-series data, logs, traces, and performance metrics.
  • Data is curated and structured to improve usability for product development and operations teams.

This setup helps teams reduce mean time to resolution and operational costs, while enhancing visibility across cloud environments.

Customer Perspective

Oscar Papel, CISO at Truveta, shared that Observe provides essential visibility into their cloud infrastructure. This visibility supports faster issue resolution and enables security and infrastructure teams to proactively manage potential risks.

For product development professionals, Observe’s approach offers a scalable, cost-effective way to monitor complex systems and leverage AI for quicker problem-solving.

To explore more about AI-driven tools and courses that can support your product development journey, visit Complete AI Training.


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