Groundcover Raises $100 Million Series C to Create the Observability Platform Built for the AI Era

groundcover, a bring-your-own-cloud (BYOC), eBPF and OpenTelemetry (OTel)-native observability platform, announced a $100 million Series C funding round led by One Peak, with participation from Morgan Stanley Expansion Capital and existing investors Zeev Ventures, Angular Ventures, Heavybit and Jibe.The round brings groundcover’s total funding to $160 million and follows a year in which the company tripled annual recurring revenue and doubled its global headcount.

The capital will accelerate groundcover’s mission to become the world’s first true observability platform built for the AI era, designed for autonomous operations, large-scale, high-fidelity telemetry, privacy and control, as observability becomes core AI infrastructure.

AI is Where Legacy Observability Breaks
Observability never caught up. The telemetry volumes required to monitor modern production environments are doubling every few months with the rapid adoption of cloud-native technologies, and are only accelerating with AI – as teams require deeper visibility into their AI stack and agentic workflows. 

While telemetry keeps exploding and driving up spend, AI-native teams have a growing need for it – with new emerging use cases powering their agentic and autonomous operations. Legacy observability platforms cannot scale to this level, forcing teams to sample, throttle, silo, or see less of their telemetry data.

groundcover is designed to power the companies defining the AI era that need a fundamentally different approach. groundcover was built on top of a BYOC architecture supporting AI-scale telemetry, stored and accessed privately and securely in the cloud premises of its customers. 

“The AI era demands a completely different observability architecture, and groundcover is the only company that has built it,” said David Klein, co-founder and MP, One Peak. “We believe they will define the next chapter of this category.”

The Grid Beneath the Next Generation of Software
Autonomous software operations need a foundational grid, much like every modern invention needed the electricity grid that came before it. That grid is observability.

Legacy observability platforms were designed to reduce data and require heavy manual instrumentation, creating gaps that engineers might tolerate but limit the power of AI agents. An agent turning raw observability data into autonomous actions in production is only as reliable as the data grid that powers it. 

groundcover built its platform for that future. Its adaptive eBPF sensor deploys in minutes with no code changes and captures full-fidelity telemetry, unsampled, across infrastructure, application and AI workloads. With native OpenTelemetry support on top of that, this highly enriched telemetry is stored in groundcover’s BYOC data plane, with zero sampling or cardinality limits – creating a data foundation where both engineers and agents can reach their full potential.

“We are the only platform to harness the potential of eBPF with the endless power of BYOC for observability,” said Shahar Azulay, CEO and co-founder, groundcover. “On top of that unique architecture, groundcover has built Agent Mode, our agentic experience that helps engineers surface, troubleshoot and remediate issues in production. With this round we’re announcing today, we plan to change the way engineers and agents collaborate to bring true autonomy into production operations.”

Momentum Across Customers, Revenue and Partnerships
groundcover’s growth over the past year included more than 250 paying customers, ranging from early-stage start-ups to Fortune 5 enterprises. The company achieved over 3x Y/Y ARR growth, closed multiple seven-figure deals in the past 12 months, and saw strong net revenue expansion from its existing customer base.

groundcover plans to use the Series C funding to accelerate its growth and trajectory in becoming the leading AI-era observability platform. A major part of the funds will be directed towards scaling its go-to-market motion as it expands its footprint in North America, where it already displaces legacy incumbents at a growing pace. groundcover will also use the funds to expand into new geographies and deepen its partner program and co-sell activity with major cloud providers. The funds will also be used to accelerate groundcover’s product roadmap, expanding its AI capabilities and core observability platform into new use cases and product offerings.

To learn more about the company’s vision for the next phase of growth, read Shahar’s blog post.