Observability Platform Observe Closes $156 Million Series C to Scale AI-Powered Observability for Enterprises

Observe, an AI-Powered Observability Platform, led by Jeremy Burton(CEO), Keith Butler(President & CRO), Qi Jin(President, Engineering & Products), Jacob Leverich(Chief Product Officer), Shruti Bhat(Chief Marketing Officer), and Eric Rehm(VP Finance), has secured $156 million Series C funding led by Sutter Hill Ventures with participation from Madrona Ventures, Alumni Ventures, Snowflake Ventures and Capital One Ventures.

Observe has tripled revenue and monthly users, doubled its enterprise base, and hit 180% net revenue retention, processing over 150 PB of telemetry data. Enterprises and AI-native companies are turning to Observe over legacy tools like Splunk and Datadog for its cost-efficient data lake, knowledge graph, and AI-powered troubleshooting.

Observe is growing fast as enterprises move telemetry to data lakes for scale and savings, struggle with connecting data in complex systems, and adopt AI to speed up root cause analysis and resolution.

Observe’s platform is built on three core components: the O11y Data Lake™, a scalable, low-cost observability lake that streams telemetry using open standards; the O11y Knowledge Graph™, a real-time system map connecting services, resources, and events; and O11y AI SRE™, an agentic AI that enhances instrumentation, accelerates troubleshooting, and automates incident response.

Backed by Series C funding, Observe is accelerating product development, AI innovation, and global hiring. As enterprises adapt to a world where every system and service produces actionable data, Observe is emerging as the leader in AI-powered observability at cloud scale.