Observe Inc. has raised $156 million in a Series C funding round. The round was led by Sutter Hill Ventures, with participation from Madrona Ventures, Alumni Ventures, Capital One, and the venture arms of Snowflake Inc. and PagerDuty Inc.
The company provides an AI-native observability platform for enterprises. This platform analyzes application diagnostics to detect and resolve technical problems. For instance, it helps software teams investigate issues with built-in troubleshooting tools, guided by an OpenAI-powered chatbot.
Redefining Troubleshooting with AI
Observe’s platform is built on three core components. First, the O11y Data Lake offers a scalable, low-cost data lake for real-time observability data. Second, the O11y Knowledge Graph provides a contextual model of a customer’s entire IT system.
Finally, a newer agentic AI component, O11y AI SRE, automates the investigation process to restore applications quickly.
This integrated architecture provides a developer-first experience. It automatically surfaces context behind incidents, therefore leading to faster troubleshooting. This approach aims to replace legacy tools from competitors like Datadog and Splunk.
The company has tripled its annual revenue over the last year. Its platform now processes a combined 150 petabytes of telemetry data monthly as it displaces tools including Elasticsearch. Observe will use the new capital to advance its product capabilities and expand its global teams.
