Investing in Observo AI

For years, the enterprise observability and security landscape has been broken. Observo AI represents a breakthrough in data pipeline management, leveraging the power of agentic AI to intelligently compress, route, and manage log data at zetta-byte scale. We’re proud to co-lead their seed round alongside Lightspeed Venture Partners.

Data security is a top concern for CISOs and enterprise CIOs worldwide. Traditional tools are overwhelmed by the explosive growth of data, making it nearly impossible for legacy systems to keep up. This overload has led to increased cybersecurity risks, with breaches costing organizations an average of $4.45M per incident and operational inefficiencies causing an estimated $2.8 trillion¹ in losses annually. Observo AI changes this paradigm by leveraging machine learning and large language models to process data up to 5-6x more efficiently than legacy solutions, enabling enterprises to significantly reduce costs, enhance threat detection, and streamline operations.

So what made us excited to invest in Observo?

• They reduce costs (and data) significantly. Observo AI enables enterprises to reduce observability and security expenses by over 50% (all enterprise customers we spoke with credited Observo AI for helping with a 60 to 90% data reduction compared to 20 to 40% from other platforms). 
• They prioritize a proactive strategy. Observo AI leverages advanced machine learning and anomaly detection techniques to help security and DevOps teams cut through the noise and highlight actionable, high-value signals that prevent breaches and drive down operational costs. 
• The team. Founders Gurjeet and Ricky bring deep technical expertise and firsthand experience tackling data challenges at Rubrik. Their time at Rubrik highlighted a critical inefficiency: over 80% of ingested data provided minimal insight for security and observability use cases, overwhelming existing systems and inflating costs. They are building a team with deep expertise in AI, cybersecurity, and data management to create a solution that helps organizations process and understand their critical information. They know data better than anyone out there.

We believe Observo AI is building the future of enterprise data management, and we are thrilled to support their vision of reimagining how organizations process, secure, and operationalize their data.

Observo is hiring, and you can try out the platform today.

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‍^{1 Data from IBM’s 2024 Cost of a Data Breach Report.}