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Observo AI Secures $15M to Optimize Data Pipelines with AI-Driven Automation

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Observo AI, an AI-native data pipeline platform addressing the growing challenges of data sprawl and observability costs, has secured $15 million in seed funding. The round was led by Felicis and Lightspeed Venture Partners, with participation from enterprises such as Bill, Informatica, and Harbor Freight Tools, which are already leveraging the platform to process petabytes of data daily. Since launching nine months ago, Observo AI has achieved 600% revenue growth quarter-over-quarter, reflecting strong market demand.

Tackling Data Overload with Agentic AI

With AI adoption accelerating, enterprises face an explosion of observability and security data—100x more than pre-AI workloads—leading to rising operational costs, inefficiencies, and increased security risks. A 2024 KPMG study found that nearly 50% of enterprises experienced security breaches, with false alerts and poor data quality cited as key factors.

Observo AI, founded by Gurjeet Arora and Ricky Arora, former Rubrik executives, aims to automate data pipeline optimization using Agentic AI, ML, and LLMs. Their platform:

  • Reduces data processing costs by over 50%
  • Improves detection accuracy
  • Speeds up incident resolution by 40%

An AI-First Approach to Observability & Security

Observo AI filters and prioritizes high-value data while eliminating redundant streams—allowing security and DevOps teams to focus on preventing breaches and improving system reliability. Key capabilities include:

  • Real-time adaptive filtering to reduce noisy data
  • LLM-powered anomaly detection to highlight critical threats
  • Automated pipeline optimization to prevent bottlenecks

Investor & Customer Endorsements

Jake Storm, General Partner at Felicis, emphasized how Observo AI “cuts through the noise and delivers actionable insights—precisely what AI-powered enterprises need.”

Guru Chahal, Partner at Lightspeed Venture Partners, called Observo AI’s Agentic AI-driven observability a game changer, continuously learning and adapting to data challenges.

Rinki Sethi, CISO at Bill, highlighted how Observo AI has eliminated hours of manual alert sorting, allowing security teams to focus on proactive threat detection.

With its AI-first, autonomous approach, Observo AI is poised to redefine how enterprises manage, process, and secure AI-generated data, making observability and security more efficient, intelligent, and cost-effective.

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