---
title: "Snowflake Mulls $1 Billion Observe Buyout To Sharpen AI Edge"
type: "News"
locale: "zh-CN"
url: "https://longbridge.com/zh-CN/news/270725970.md"
description: "Snowflake Inc. is in talks to acquire Observe Inc. for about $1 billion, aligning with its AI and data strategy. This acquisition would enhance Snowflake's capabilities in monitoring and observability, crucial for AI workloads and cloud-native applications. Snowflake's strong financial performance, with a 46% stock increase year-to-date and robust earnings, supports this strategic move. The company continues to expand its AI and cloud data capabilities, with recent acquisitions and partnerships highlighting its growth trajectory."
datetime: "2025-12-24T12:17:46.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/270725970.md)
  - [en](https://longbridge.com/en/news/270725970.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/270725970.md)
---

> 支持的语言: [English](https://longbridge.com/en/news/270725970.md) | [繁體中文](https://longbridge.com/zh-HK/news/270725970.md)


# Snowflake Mulls $1 Billion Observe Buyout To Sharpen AI Edge

**Snowflake Inc.** (NYSE:SNOW) is in talks to acquire application monitoring startup **Observe Inc.** for about $1 billion.

The Information reported the potential deal on Wednesday, though the transaction has not yet been finalized.

Observe offers a modern observability platform built on a streaming data lake. The technology is designed to enable faster searches, stronger data correlation, and lower operating costs for customers managing large-scale application data.

**_Also Read: Snowflake Stock Slides After Q3 Beat — Analysts Raise Targets Anyway_**

Benzinga has reached out to Snowflake investor relations for comment and is awaiting a response.

## Deal Fits Broader AI And Data Strategy

The reported talks follow Snowflake’s recent push to expand its AI and cloud data capabilities. In November, the company acquired data startup **Select Star** to strengthen its metadata management and AI-driven analytics offerings.

An acquisition of Observe would further extend Snowflake’s reach into monitoring and observability, an area increasingly tied to AI workloads and cloud-native applications.

## Strong Earnings Backdrop

Snowflake shares are up about 46% year to date, supported by demand for its AI-powered data platform and rising enterprise adoption. The company reported $1.94 billion in cash and cash equivalents as of Oct. 31, 2025.

In the third quarter, Snowflake posted revenue of $1.21 billion, topping estimates of $1.18 billion. Adjusted earnings came in at 35 cents per share, above the 31-cent consensus. Revenue rose 29% year over year, driven by $1.16 billion in product revenue and a net revenue retention rate of 125%.

Remaining performance obligations climbed 37% to $7.88 billion. Customers spending more than $1 million annually rose to 688.

## Outlook And Analyst View

For the fourth quarter, Snowflake forecast product revenue of $1.195 billion to $1.20 billion, implying roughly 27% growth. The company also pointed to expanded partnerships with **Amazon Web Services, a unit of Amazon.com, Inc.** (NASDAQ:AMZN), **Accenture plc** (NYSE:ACN), and **Anthropic**, underscoring growing enterprise and AI-driven demand.

Analysts remain broadly constructive following the third-quarter results, citing strong RPO growth and early AI adoption driving bookings.

**SNOW Price Action:** Snowflake stock closed at $225.10 on Tuesday, down 0.77%, according to Benzinga Pro data.

**_Read Next:_**

-   **_Snowflake’s New’ AI-Driven Migration’ Tech Could Speed Up Cloud Moves By 4x, Analyst Says_**

_Photo by JHVEPhoto via Shutterstock_

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