groundcover Raises $100M to Rebuild Software Observability

AI applications produce a lot of operational data. Watching those systems can become expensive almost as quickly as running them.

groundcover has raised $100 million in Series C funding to challenge the way conventional observability platforms collect and store that data.

What happened

The round was led by One Peak, with Morgan Stanley Expansion Capital and existing investors participating. It brings the company’s total funding to $160 million.

groundcover collects logs, metrics and traces used to understand whether software is healthy, but keeps that information inside the customer’s own cloud environment.

Why it matters

Observability tools help engineering teams investigate outages, performance problems and unusual behaviour. The standard model often involves sending large volumes of operational data to an external platform and paying according to how much is ingested or stored.

That can create two problems: rising costs and concern over sensitive information leaving the customer’s environment.

AI systems make both issues more urgent. Agents and model-driven applications can generate huge volumes of events, tool calls and logs that teams need to inspect.

The bigger picture

groundcover is part of a wider shift toward architectures that bring software to the data instead of moving all the data to a software vendor. That model can appeal to companies with strict privacy, security or cost requirements.

The company’s claims of threefold ARR growth, more than 250 customers and better performance have not been independently verified. But the market signal is clear: the AI era is not only creating demand for more compute. It is also forcing companies to rethink the cost of observing everything that compute does.