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The present scenario in a data-driven world poses challenges that have not been faced by enterprises in such scale before, particularly in light of the quick and unprecedented integration of AI. These massive increases pose substantial difficulties in terms of managing, observing, and securing the data. In the wake of this, Observo AI is revolutionizing with the creation of solutions for smoothing data pipelines and efficiency in operations.
Founders Gurjeet Arora and Ricky Arora, Observo AI seeks to change how companies approach and handle data during the AI era.
The firm aims to provide AI-native data pipelines that resolve data sprawl and the increased costs of observability and security. By integrating advanced machine learning with agentic AI, which includes systems that make decisions, learn, and adapt to changing data environments, Observo AI improves the efficiency, security, and cost-effectiveness of data processing.
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In January 2025, Observo AI announced the successful closing of its seed funding round in an amount of $15 million. The round was led in collaboration with Felicis and Lightspeed Venture Partners, one of the most established names when it comes to investments in new technologies and unique startups. This is expected to fuel the development and deployment of agentic AI-powered data pipeline solutions from Observo AI.
The explosion of data due to the influx of AI in business operations has caused volumes to grow more than 100 times that of pre-AI workloads.
Traditional observability and security tools, built for earlier data environments, cannot cope with this exponential growth.
Common problems include false positives, sprawl, and missed threats, which make the operational costs unsustainable and amplify the threat levels. A 2024 KPMG study highlighted that nearly 50% of enterprises experienced security breaches, with poor data quality and false alerts being major contributors.
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Observo AI’s Innovative Solution Observo AI addresses these challenges by deploying an AI-first architecture that fundamentally transforms how security and observability data are ingested, processed, analyzed, and prioritized.
The platform’s agentic AI continuously evolves its understanding of data patterns, automatically optimizing data pipelines in real-time as threats and anomalies emerge.
By leveraging machine learning and large language models (LLMs), Observo AI filters through vast amounts of noisy, unstructured data, extracting only the most critical signals for incident detection and response.
This autonomous capability enables the platform to anticipate potential data processing bottlenecks, proactively adjust filtering rules, and eliminate redundant data streams without human intervention.
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Real-World Impact and Adoption
Observo AI’s platform has garnered significant interest from enterprises seeking to manage their data more effectively. Companies like Bill, Informatica, and Harbor Freight Tools have adopted the platform to process petabytes of data daily. Since its launch nine months ago, Observo AI has achieved a remarkable 600% revenue growth quarter-over-quarter, underscoring the demand for its innovative solutions.
Leadership Insights
Co-founders Gurjeet Arora and Ricky Arora bring experience from their tenure at Rubrik, where they experienced firsthand the challenges of managing rapidly growing data volumes.
Their deep expertise in AI and security informed the creation of Observo AI. “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.”
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Investor Perspectives
The seed funding round attracted prominent investors who recognize the transformative potential of Observo AI’s technology. Jake Storm, General Partner at Felicis, stated, “Every new AI agent, application, and model generates exponentially more data, and the result is chaos for DevOps and security teams.
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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Future Prospect
With the influx of funds, Observo AI intends to develop the platform further, expand the market base, and remain focused on innovation in data management. The company has been striving to facilitate enterprises in navigating the commoditization during AI times by providing effective solutions for cost-cutting measures, improved detection accuracy, and rapid resolution of incidents.
With increasing volumes of data, the agentic AI-powered data pipelines through Observo AI shall be a prime necessity for business organizations to stay efficient, secure, and competitive in this new digital landscape.
