Sazabi Raises $8M in Seed Funding Led by J2 Ventures

The round also saw participation from Orange Collective and over 60 angel investors from leading AI companies, including Vercel, Cursor, LangChain, OpenAI, Anthropic, GitHub, Replit, Browserbase, and others.

The company plans to use the funding to grow its engineering team, speed up product development, and expand integrations with modern cloud and developer platforms.

Sazabi is building an AI-powered observability platform for modern software teams. As applications become more complex and change more frequently, traditional dashboards, manual monitoring, and alert systems are no longer enough.

Read More:Airwallex Raises $320M in Series H Funding, at $11 Billion Valuation

Instead of relying on engineers to configure monitoring tools and investigate incidents manually, Sazabi uses AI agents to understand a company's logs, infrastructure, and codebase. The platform can automatically detect, investigate, and help resolve production issues before they become major problems.

Sazabi is built around the idea that logs can serve as the main source of information for understanding production systems. Instead of separating observability across logs, metrics, and traces, the platform uses AI to generate the insights engineers need directly from log data, reducing complexity while still providing the capabilities of a traditional observability system.

Since its public launch, Sazabi has gained strong interest from AI-focused engineering teams. During its closed alpha, the company added 50 teams in two weeks, performed 8,000 automated investigations, detected 2,000 issues, and created 200 pull requests in customer code repositories. One customer, Sandstone, adopted Sazabi to improve reliability as it grew and shipped software more quickly.

"Sherwood is the kind of founder I back without hesitation," said Hunter Walk, Founding Partner at Homebrew who previously backed AI code review platform Graphite. "A technical, second-time founder with clear product vision and deep subject-matter expertise. Sazabi reminds me of Graphite in the early days."

"Software systems are becoming increasingly probabilistic and dynamic," said Christine Keung, General Partner at J2 Ventures. "Existing observability tools were built for a far more deterministic world. If Datadog defined observability during the cloud-native era, Sazabi is defining it for the AI-native one."

"Sazabi caught issues we otherwise would have missed, and fixed them before customers noticed," said Liam Germain, CTO at Sandstone. "Its like having an extra engineer on call who reads every logline. We onboarded in 15 minutes, and started receiving useful alerts immediately."

"AI has changed how software gets written. Now it is changing how software gets operated," said Sherwood Callaway, founder and CEO of Sazabi. "Tools like Cursor, Claude Code, and Codex have transformed the first half of software engineering. But the second half — monitoring, debugging, incident response, and reliability — is still stuck in the pre-AI era. Sazabi is rebuilding observability from first principles for a world where agents are part of every engineering team."

About Sazabi

Founded in 2025 by Sherwood Callaway and based in San Francisco, Sazabi is an AI-powered observability platform for engineering teams. The platform uses chat, AI agents, and a logs-first approach to help teams quickly detect, investigate, understand, and resolve production issues.

Read More:Optimeos Life Sciences Receives Investment From Hatch BioFund