OpenObserve, a Menlo Park company that sells an open-source platform for monitoring logs, metrics and traces, raised a $10m Series A round announced on 28 April 2026.
Nexus Venture Partners and Dell Technologies Capital led the round. Both had backed the company at seed stage and returned for the Series A. The size of the seed round was not disclosed, and no valuation was given for the new round.
The company said the money would go to expanding go-to-market operations and supporting a growing base of enterprise customers. It announced the funding together with what it calls Observability 3.0, a set of new features built around artificial intelligence.
“We're not trying to be a better version of what exists. We're trying to make what exists irrelevant.”Prabhat Sharma, Founder, OpenObserve
What OpenObserve does
Observability software collects the telemetry that applications and infrastructure produce, such as logs, metrics, traces and real user monitoring data, so engineers can find out why a system is slow or broken. OpenObserve puts that data, along with analytics, alerting and incident response, in one interface.
IT Brief UK reported that the platform stores data in S3-style object storage in the Parquet file format, which the company says handles high volumes, lowers storage costs and removes the need to manage a database. Unite.AI said it queries data directly from object storage, without a separate indexing layer, and that this design separates compute from storage.
The company positions itself against older open-source stacks. IT Brief named Prometheus-Grafana and ELK, the Elasticsearch-based stack, as the legacy approaches it is aiming to replace. Founder Prabhat Sharma started the company in 2022.
The Observability 3.0 launch
The release adds an AI SRE, an automated site reliability engineer that uses the combined telemetry to identify root causes during an incident and to recommend or, in some cases, take corrective action. It also adds anomaly detection, meant to warn teams before an incident occurs, and LLM observability, which covers prompt monitoring, evaluation tracking and performance monitoring for generative AI applications.
Sharma framed the release as a change in approach rather than a better version of existing tools. "We're not trying to be a better version of what exists. We're trying to make what exists irrelevant," he wrote in the company's announcement.
Abhishek Sharma, a partner at Nexus Venture Partners, told IT Brief UK that the firm believed the observability stack was overdue for reinvention. Deepak Jeevankumar, managing director at Dell Technologies Capital, said engineering teams are drowning in data in an AI and agent-first world.
Traction and market
The company said more than 6,000 organisations use the platform, including large enterprises, and that the open-source project has more than 18,000 GitHub stars, according to IT Brief UK and Unite.AI. Figures differ between outlets: other coverage of the announcement cites higher numbers, so the counts are best read as approximate company claims.
The company also hired Shani Shoham as chief revenue officer and added US West and EU regions and Microsoft Azure hosting, according to its announcement.
Paul Nashawaty of analyst firm theCUBE Research, quoted by IT Brief UK, said telemetry volumes are growing by roughly 30% a year and that 75% of organisations still rely on between six and 15 monitoring tools. That fragmentation is the gap OpenObserve says it is targeting.
Company website: openobserve.ai