Observe is betting big on AI to keep up with rapid software updates and exploding data volumes.
The San Mateo-based observability platform launched a Model Context Protocol (MCP) server earlier this year. It lets developers pull observability data into AI coding tools and large language models (LLMs) directly in their workflow.
CEO Jeremy Burton said this helps engineers root out issues faster as AI agents multiply across networks. 
“In a few years, you’re going to have hundreds or thousands of agents on your network that are all interacting with employees or interacting with each other,” Burton said.
“That’s all great until something goes wrong, and you’ve got to try and, you know, do a Sherlock Holmes and figure out who done it, you know?”
Burton added that some customers are already using MCP to analyze tickets and pinpoint problematic code right from their dev environment — a workflow that would have been “science fiction” just a year ago.
The company is also prepping support for Apache Iceberg, an open-source data table format that helps companies own and standardize their data. That’s expected in private preview by year-end.
Observe saw its revenue nearly triple in 2024, with 93% gross customer retention. Clients include CapitalOne, Paramount, and Dialpad.
The company raised $156 million in a Series C led by Sutter Hill Ventures, with backing from Madrona Ventures, Alumni Ventures, and strategic investors including Snowflake. The new funds will fuel R&D and hiring.
“We’ve got a couple of really good things out there, but I feel like we’ve just gotten started,” Burton said.
The launch follows a surge in AI-driven software releases, pushing observability tools like Observe to evolve fast or fall behind.
