OpenObserve Raises $10M in Series A Funding

The company plans to use the funds to expand its go-to-market efforts and support its growing customer base.

OpenObserve has launched Observability 3.0, a new AI-powered platform that combines anomaly detection, AI SRE, and LLM monitoring into a single solution. Unlike older tools built for simpler systems, this platform is designed for modern AI workloads. At its core is AI SRE, which uses combined data to identify root causes and automatically suggest or take actions, reducing the need for manual analysis.

OpenObserve brings together infrastructure, application, and AI monitoring into a single platform, eliminating the need for multiple tools. It offers much lower storage costs and removes the need for database management, helping teams shift from reactive issue fixing to more automated operations.

Traditional observability tools such as Prometheus, Grafana and ELK struggle to handle the high volumes of data generated by modern AI systems. Many commercial tools also limit the amount of data that can be stored, reducing visibility and insights. Teams often rely on multiple separate tools for AI monitoring, incident management, and frontend tracking, which adds complexity. OpenObserve replaces this with a single platform that brings everything together in one place, making it easier to manage and operate.

OpenObserve uses an S3-based system to manage large amounts of data more efficiently, without the high cost or complexity of older tools. Its new AI features bring together logs, metrics, traces, and LLM data into one simple interface.

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“Observability 3.0 is a new operating model for engineering teams, and the companies that adopt it will ship faster, sleep better, and outpace those still wiring together legacy tools,” said Prabhat Sharma, founder and CEO, OpenObserve. “With Observability 3.0, companies can move from firefighting to proactive autonomous operations and get back to building the products that drive their businesses forward.”

“Legacy observability stacks were not built for AI scale telemetry and that’s creating real friction. Telemetry volumes are growing roughly 30% year over year yet 75% of organizations still rely on 6 to 15 tools, leading to fragmentation and blind spots," said Paul Nashawaty, Principal Analyst and Practice Lead at theCUBE Research. "Vendors responding with ‘data diets’ are solving the wrong problem, engineering teams need more contextual, correlated telemetry, not less to diagnose issues in AI-driven environments. This is driving a shift to unified observability, where a shared telemetry layer replaces stitched together tools. Ultimately, it’s leading to autonomous operation, AI-driven SRE models such as OpenObserve's, where systems surface root cause and act, instead of teams manually triaging incidents.”

About OpenObserve

Founded in 2022, by Prabhat Sharma and based in Menlo Park, California, OpenObserve provides a modern observability platform used by customers worldwide. It brings together logs, metrics, traces and user monitoring into a single system, offering much lower storage costs and eliminating the need for database management. Built on an S3 based architecture, it delivers enterprise level performance without the complexity and high costs of older tools.

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