Fremont, Calif. – Observo AI, an AI-native data pipeline company, has announced a successful $15 million seed funding round led by Felicis and Lightspeed Venture Partners.
Observo AI, a company started in 2022, has received funding from some big investors. One of them, Felicis, has been investing in new companies since 2006 and manages over $3 billion. Another investor, Lightspeed, invests in a variety of areas, like business software, apps we use every day, financial technology, and healthcare.
The company is tackling the exploding costs and complexity of observability and security in the age of AI, where data volumes have increased exponentially.
Observo AI’s platform leverages advanced machine learning and “agentic AI” – AI that can learn, make decisions, and adapt dynamically – to optimize data pipelines.
This allows enterprises to process the massive influx of AI-generated data more efficiently, securely, and at a significantly lower cost. The company boasts impressive results, claiming over 50% reductions in data processing costs and more than 40% faster incident resolution.
This funding announcement comes as Observo AI experiences rapid growth, with a remarkable 600% quarter-over-quarter revenue increase since its launch just nine months ago.
Industry giants like Bill, Informatica, and Harbor Freight Tools have already adopted the platform, processing petabytes of data daily.
The rise of AI has created a data paradox. While AI drives innovation, it also generates massive amounts of operational and observability data, overwhelming traditional tools.
A recent KPMG study highlighted the challenge, revealing that nearly 50% of enterprises suffered security breaches in 2024, with poor data quality and false alerts being major contributing factors. Observo AI addresses this challenge head-on with its AI-first architecture.
“Observo uses LLMs and Agentic AI to revolutionize observability and security,” explains Gurjeet Arora, co-founder and CEO of Observo AI. “Our platform automates routine tasks, highlights key insights, and lets teams focus on preventing breaches and ensuring reliability.”
The platform continuously learns data patterns, automatically optimizing data pipelines in real-time as threats and anomalies emerge. By intelligently filtering vast amounts of unstructured data, Observo AI surfaces critical signals for incident detection and response, proactively adjusting to potential bottlenecks and eliminating redundant data streams without human intervention.
Investors are enthusiastic about Observo AI’s potential. “Every new AI agent, application, and model generates exponentially more data, and the result is chaos for DevOps and security teams,” says Jake Storm, General Partner at Felicis.
“Observo AI’s platform applies ML and LLM-driven automation to cut through the noise and deliver actionable insights—precisely the kind of innovation needed to secure the AI-powered enterprise.
” Guru Chahal, Partner at Lightspeed Venture Partners, adds, “Observo AI’s use of Agentic AI with streaming observability creates a powerful system that constantly learns and improves, making data pipelines efficient and intelligent. This is game-changing technology for enterprises grappling with the data challenges of observability and security infra.”
Rinki Sethi, CISO at Bill, highlights the practical benefits: “Before Observo AI, teams spent hours sorting through alerts and noisy data, which was neither scalable nor effective. Observo AI automates the data cleanup and highlights the insights that matter, enabling security teams to focus on threat detection and proactive security hunting.”
About Observo AI:
Observo AI builds AI-native data pipelines to solve the most pressing observability and security challenges for enterprises in the AI era.
Using Machine Learning, LLMs, and Agentic AI, Observo automates data optimization, reduces costs by over 50%, and accelerates incident response by 40%+.
Observo helps enterprises focus on the signal, not the noise, ensuring scalability, security, and operational efficiency.
How Observo is Different from others?
Observo AI isn’t just another tool – we’re a fundamentally new approach to Data Pipelines for Security and Observability data.
By leveraging machine learning, large language models (LLMs), and what we call “agentic AI” – AI that can make decisions and adapt dynamically – They’ve created a solution that is 5-6x more efficient than legacy tools.
Their platform doesn’t just process data; it intelligently optimizes it, automatically adjusting data pipelines in real-time as threats and anomalies emerge.
This allows them to filter through terabytes of noisy, unstructured data, extracting only the most critical signals for incident detection and response.
Their agentic platform also anticipates potential data processing bottlenecks, proactively adjusting filtering rules and eliminating redundant data streams without human intervention. This helps teams:
- Accelerate Incident Resolution: Cut response times by 40%+ through AI-powered prioritization and automated routing of critical security threats
- Optimize Costs: Reduce the cost of SIEM and observability tools by over 50% while expanding coverage and eliminating monitoring blind spots
- Enhance Decision Making: Deliver focused, high-value data to Security and DevOps teams without the noise of routine telemetry