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Observe Boosts AI-Powered Software Observability

Founded in 2017 to tackle rising data volumes, Observe now addresses the latest AI-driven surge in observability complexity. Its platform embeds AI agents for rapid issue detection and has launched a Model Context Protocol server to integrate data with coding tools. With Apache Iceberg support on the horizon, Observe’s 2024 revenue nearly tripled, fueled by enterprise adoption and a $156M Series C raise.

Published July 30, 2025 at 10:06 AM EDT in Software Development

Observability in the AI Era

Since its 2017 launch in San Mateo, Observe has tackled the rising flood of monitoring data driven by rapid release cycles. As companies deploy new versions more frequently, traditional observability tools strain under massive telemetry volumes. Observe’s platform gives engineers a clear, unified view into service health, making it easier to spot, investigate, and resolve disruptions quickly.

Navigating AI-Driven Complexity

Advancements in AI bring both opportunity and complexity. Observe embeds AI agents that automate root-cause analysis and reduce mean time to resolution. But as CEO Jeremy Burton warns, networks soon could host thousands of agents interacting with each other and your teams. When things go wrong, pinpointing the culprit can feel like a high-stakes whodunit.

  • Integrated AI agents accelerate root-cause analysis.
  • Model Context Protocol (MCP) links observability data to AI coding tools.
  • Upcoming Apache Iceberg support lets teams standardize and own their datasets.

Model Context Protocol in Action

Earlier this year, Observe released its MCP server so developers can query observability data from within AI coding environments. Imagine opening a support ticket in your IDE and prompting Observe to analyze trace data, identify code hotspots, and even suggest fixes—workflows that felt like science fiction just a year ago.

  • Diagnose issues directly within IDE tickets.
  • Generate AI-driven code recommendations.
  • Streamline collaboration between developers and observability data.

Scaling Up with Strong Growth

In 2024, Observe’s revenue nearly tripled and customer retention hit 93%, powered by enterprise wins at CapitalOne, Paramount, and Dialpad. The company raised a $156 million Series C led by Sutter Hill Ventures to fund R&D and expand its team. Private previews for Apache Iceberg support are set to roll out before year-end.

What’s Next for Observe

As AI agents multiply and data volumes soar, Observe aims to simplify observability for modern architectures. With tighter integration into development workflows and support for open-source standards, the platform is poised to help organizations stay ahead of complexity—one agent at a time.

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