Skip to main content

Observo AI Raises $15M in Seed Funding

Observo AI raised $15 million in a seed funding round led by Felicis and Lightspeed Venture Partners. 

By combining advanced machine learning with agentic AI that can make decisions, learn, and dynamically adapt to changing data environments, Observo AI optimizes data pipelines to help enterprises process the explosion of AI-generated data more efficiently, securely, and cost-effectively. This enables enterprises to reduce data processing costs by over 50% while improving detection accuracy and speeding up incident resolution by more than 40%.

Founders Gurjeet Arora and Ricky Arora, from Rubrik, came up with the idea for Observo AI when they applied their deep expertise in AI and security to solve the rapidly growing data problem. "Observo uses LLMs and Agentic AI to revolutionize observability and security," said Gurjeet Arora, co-founder and CEO. "Our platform automates routine tasks, highlights key insights, and lets teams focus on preventing breaches and ensuring reliability."

The adoption of AI has introduced a unique paradox. While AI agents drive unprecedented innovation, they simultaneously produce vast quantities of observability and operational data that exceed the capacity of traditional tools to manage effectively. Observo AI tackles this challenge with an AI-first architecture, fundamentally transforming how security and observability data are ingested, processed, analyzed, and prioritized.

At its core, Observo AI's agentic platform continuously evolves its understanding of data patterns, automatically optimizing data pipelines in real-time as threats and anomalies emerge. By leveraging ML and LLMs, Observo AI filters through terabytes of noisy, unstructured data, extracting only the most critical signals for incident detection and response. The platform's autonomous capabilities enable it to anticipate potential data processing bottlenecks, proactively adjust filtering rules, and eliminate redundant data streams without human intervention.

“Every new AI agent, application, and model generates exponentially more data, and the result is chaos for DevOps and security teams,” said 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, added, “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.”

The Latest

One of the most misunderstood culprits of poor application performance is packet loss. Even minimal packet loss can cripple the throughput of a high-speed connection, making enterprise applications sluggish and frustrating for remote employee ... So, what's going wrong? And why does adding more bandwidth fail to fix the issue? ...

Image
Cloudbrink

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 5 covers the infrastructure and hardware supporting AI ...

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 4 covers advancements in AI technology ...

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 3 covers AI's impact on employees and their roles ...

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 2 covers the challenges presented by AI, as well as solutions to those problems ...

In the final part of APMdigest's 2025 Predictions Series, industry experts offer predictions on how AI will evolve and impact technology and business in 2025 ...

E-commerce is set to skyrocket with a 9% rise over the next few years ... To thrive in this competitive environment, retailers must identify digital resilience as their top priority. In a world where savvy shoppers expect 24/7 access to online deals and experiences, any unexpected downtime to digital services can lead to significant financial losses, damage to brand reputation, abandoned carts with designer shoes, and additional issues ...

Efficiency is a highly-desirable objective in business ... We're seeing this scenario play out in enterprises around the world as they continue to struggle with infrastructures and remote work models with an eye toward operational efficiencies. In contrast to that goal, a recent Broadcom survey of global IT and network professionals found widespread adoption of these strategies is making the network more complex and hampering observability, leading to uptime, performance and security issues. Let's look more closely at these challenges ...

Image
Broadcom

The 2025 Catchpoint SRE Report dives into the forces transforming the SRE landscape, exploring both the challenges and opportunities ahead. Let's break down the key findings and what they mean for SRE professionals and the businesses relying on them ...

Image
Catchpoint

The pressure on IT teams has never been greater. As data environments grow increasingly complex, resource shortages are emerging as a major obstacle for IT leaders striving to meet the demands of modern infrastructure management ... According to DataStrike's newly released 2025 Data Infrastructure Survey Report, more than half (54%) of IT leaders cite resource limitations as a top challenge, highlighting a growing trend toward outsourcing as a solution ...

Image
Datastrike

Observo AI Raises $15M in Seed Funding

Observo AI raised $15 million in a seed funding round led by Felicis and Lightspeed Venture Partners. 

By combining advanced machine learning with agentic AI that can make decisions, learn, and dynamically adapt to changing data environments, Observo AI optimizes data pipelines to help enterprises process the explosion of AI-generated data more efficiently, securely, and cost-effectively. This enables enterprises to reduce data processing costs by over 50% while improving detection accuracy and speeding up incident resolution by more than 40%.

Founders Gurjeet Arora and Ricky Arora, from Rubrik, came up with the idea for Observo AI when they applied their deep expertise in AI and security to solve the rapidly growing data problem. "Observo uses LLMs and Agentic AI to revolutionize observability and security," said Gurjeet Arora, co-founder and CEO. "Our platform automates routine tasks, highlights key insights, and lets teams focus on preventing breaches and ensuring reliability."

The adoption of AI has introduced a unique paradox. While AI agents drive unprecedented innovation, they simultaneously produce vast quantities of observability and operational data that exceed the capacity of traditional tools to manage effectively. Observo AI tackles this challenge with an AI-first architecture, fundamentally transforming how security and observability data are ingested, processed, analyzed, and prioritized.

At its core, Observo AI's agentic platform continuously evolves its understanding of data patterns, automatically optimizing data pipelines in real-time as threats and anomalies emerge. By leveraging ML and LLMs, Observo AI filters through terabytes of noisy, unstructured data, extracting only the most critical signals for incident detection and response. The platform's autonomous capabilities enable it to anticipate potential data processing bottlenecks, proactively adjust filtering rules, and eliminate redundant data streams without human intervention.

“Every new AI agent, application, and model generates exponentially more data, and the result is chaos for DevOps and security teams,” said 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, added, “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.”

The Latest

One of the most misunderstood culprits of poor application performance is packet loss. Even minimal packet loss can cripple the throughput of a high-speed connection, making enterprise applications sluggish and frustrating for remote employee ... So, what's going wrong? And why does adding more bandwidth fail to fix the issue? ...

Image
Cloudbrink

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 5 covers the infrastructure and hardware supporting AI ...

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 4 covers advancements in AI technology ...

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 3 covers AI's impact on employees and their roles ...

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 2 covers the challenges presented by AI, as well as solutions to those problems ...

In the final part of APMdigest's 2025 Predictions Series, industry experts offer predictions on how AI will evolve and impact technology and business in 2025 ...

E-commerce is set to skyrocket with a 9% rise over the next few years ... To thrive in this competitive environment, retailers must identify digital resilience as their top priority. In a world where savvy shoppers expect 24/7 access to online deals and experiences, any unexpected downtime to digital services can lead to significant financial losses, damage to brand reputation, abandoned carts with designer shoes, and additional issues ...

Efficiency is a highly-desirable objective in business ... We're seeing this scenario play out in enterprises around the world as they continue to struggle with infrastructures and remote work models with an eye toward operational efficiencies. In contrast to that goal, a recent Broadcom survey of global IT and network professionals found widespread adoption of these strategies is making the network more complex and hampering observability, leading to uptime, performance and security issues. Let's look more closely at these challenges ...

Image
Broadcom

The 2025 Catchpoint SRE Report dives into the forces transforming the SRE landscape, exploring both the challenges and opportunities ahead. Let's break down the key findings and what they mean for SRE professionals and the businesses relying on them ...

Image
Catchpoint

The pressure on IT teams has never been greater. As data environments grow increasingly complex, resource shortages are emerging as a major obstacle for IT leaders striving to meet the demands of modern infrastructure management ... According to DataStrike's newly released 2025 Data Infrastructure Survey Report, more than half (54%) of IT leaders cite resource limitations as a top challenge, highlighting a growing trend toward outsourcing as a solution ...

Image
Datastrike