Observo reduces observability costs using agentic AI-powered data pipelines with $15M raise

Observo AI, an artificial intelligence-powered data pipeline company that helps companies solve observability and security issues, said Thursday it has raised $15 million in seed funding led by Felicis and Lightspeed Venture Partners.

As AI-generated data becomes the norm, enterprise businesses face ever-increasing volumes of observability and operational data, rising to terabytes and petabytes. The company’s co-founders contend that threatens to overwhelm traditional platforms.

Founders Gurjeet Arora and Ricky Arora said they encountered this issue while working at Rubrik Inc., a cloud cybersecurity, management and backup services company in California. The rapid adoption of AI led them to determine that the best way to bring better observability and security to the dramatic increase of AI data sprawl was to use AI to manage it.

“Observo uses large language models and agentic AI to revolutionize observability and security,” said Gurjeet Arora, co-founder and chief executive of Observo AI. “Our platform automates routine tasks, highlights key insights, and lets teams focus on preventing breaches and ensuring reliability.”

The fundamental problem Observo cites that most observability data pipelines suffer from is that so much data is produced that a majority of it is noise. In traditional systems, this means that filtering is needed to cut through that noise, reduce duplication and organize it into something that can be directed to the proper applications for coverage. In traditional security and operations systems, this involves using rules-based tools that can fall behind as the data landscape changes.

Agentic AI is a type of artificial intelligence that can make decisions, solve multi-step problems and adapt to changing conditions without much human intervention. Observo put this technology into play to assist with orchestrating other machine learning models to adjust filters to avoid data pipeline bottlenecks, predict issues and detect anomalies proactively.

The company’s products include an AI assistant that acts as a data engineer called Orion, which can help create and manage data pipelines for security and DevOps teams using natural language commands. Users can type a sentence describing the pipeline, including the source and destination and the filtering required and it will set up and prepare the optimization required. It can also assist with managing existing pipelines or suggest improvements based on changes to data and infrastructure.

Edge Collector provides for edge data collection and processing from any source by converting it into standard formats. This makes it compatible with downstream tools and reduces the chances that data is difficult to parse. Data Lake allows for secure, long-term data retention to cut costs while allowing for on-demand decompression. Observo said the system is set up to comply with regulations and supports historical analysis and investigations using natural language queries.

The company said this funding comes alongside strong interest from enterprise customers such as cloud-based financial operations platform Bill Holdings Inc., software development company Informatica Inc. and American retailer Harbor Freight Tools.

“Before Observo AI, teams spent hours sorting through alerts and noisy data, which was neither scalable nor effective,” said Rinki Sethi, chief information security officer at Bill. “Observo AI automates the data cleanup and highlights the insights that matter, enabling security teams to focus on threat detection and proactive security hunting.”

Image: geralt/Pixabay