Sazabi announced an $8 million seed financing led by J2 Ventures, Village Global, and Y Combinator, with participation from Orange Collective and over 60 angel investors from leading AI companies, including Vercel, Cursor, LangChain, OpenAI, Anthropic, GitHub, Replit, Browserbase, and others.
Sazabi will use the funding to expand its engineering team, accelerate product development, and deepen its integrations across modern cloud and developer platforms.
Sazabi is building observability for the AI era: a world where teams ship faster, production systems change continuously, and traditional dashboards, brittle instrumentation, noisy alerts, and manual incident response can no longer keep pace. Instead of asking engineers to configure complex telemetry stacks and dig through dashboards during incidents, Sazabi uses AI agents to understand a team's logs, infrastructure, and codebase before proactively detecting, investigating, and resolving production issues.
"AI has changed how software gets written. Now it is changing how software gets operated," said Sherwood Callaway, founder and CEO of Sazabi. "The first half of software engineering has been transformed by tools like Cursor, Claude Code, and Codex. 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."
The company's approach is built around a controversial but powerful idea: logs are all you need. Instead of splitting observability workflows across logs, metrics, and traces, Sazabi treats log data as the single source of truth for understanding production systems. Sazabi uses AI to reconstruct the views engineers need from log data on its own, reducing instrumentation complexity while preserving the power of a traditional observability platform.
Sazabi was founded by Sherwood Callaway, a two-time Y Combinator founder and software engineer with more than a decade of experience building infrastructure and observability systems at high-growth companies including Brex and Crunchbase. The Sazabi team includes early members of the Brex infrastructure engineering team as well as past founders in the observability space.
"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."
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