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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.”

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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.”

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According to Auvik's 2025 IT Trends Report, 60% of IT professionals feel at least moderately burned out on the job, with 43% stating that their workload is contributing to work stress. At the same time, many IT professionals are naming AI and machine learning as key areas they'd most like to upskill ...

Businesses that face downtime or outages risk financial and reputational damage, as well as reducing partner, shareholder, and customer trust. One of the major challenges that enterprises face is implementing a robust business continuity plan. What's the solution? The answer may lie in disaster recovery tactics such as truly immutable storage and regular disaster recovery testing ...

IT spending is expected to jump nearly 10% in 2025, and organizations are now facing pressure to manage costs without slowing down critical functions like observability. To meet the challenge, leaders are turning to smarter, more cost effective business strategies. Enter stage right: OpenTelemetry, the missing piece of the puzzle that is no longer just an option but rather a strategic advantage ...

Amidst the threat of cyberhacks and data breaches, companies install several security measures to keep their business safely afloat. These measures aim to protect businesses, employees, and crucial data. Yet, employees perceive them as burdensome. Frustrated with complex logins, slow access, and constant security checks, workers decide to completely bypass all security set-ups ...

Image
Cloudbrink's Personal SASE services provide last-mile acceleration and reduction in latency

In MEAN TIME TO INSIGHT Episode 13, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses hybrid multi-cloud networking strategy ... 

In high-traffic environments, the sheer volume and unpredictable nature of network incidents can quickly overwhelm even the most skilled teams, hindering their ability to react swiftly and effectively, potentially impacting service availability and overall business performance. This is where closed-loop remediation comes into the picture: an IT management concept designed to address the escalating complexity of modern networks ...

In 2025, enterprise workflows are undergoing a seismic shift. Propelled by breakthroughs in generative AI (GenAI), large language models (LLMs), and natural language processing (NLP), a new paradigm is emerging — agentic AI. This technology is not just automating tasks; it's reimagining how organizations make decisions, engage customers, and operate at scale ...

In the early days of the cloud revolution, business leaders perceived cloud services as a means of sidelining IT organizations. IT was too slow, too expensive, or incapable of supporting new technologies. With a team of developers, line of business managers could deploy new applications and services in the cloud. IT has been fighting to retake control ever since. Today, IT is back in the driver's seat, according to new research by Enterprise Management Associates (EMA) ...

In today's fast-paced and increasingly complex network environments, Network Operations Centers (NOCs) are the backbone of ensuring continuous uptime, smooth service delivery, and rapid issue resolution. However, the challenges faced by NOC teams are only growing. In a recent study, 78% state network complexity has grown significantly over the last few years while 84% regularly learn about network issues from users. It is imperative we adopt a new approach to managing today's network experiences ...

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