Today, Arize is being acquired for $915M.
Congratulations @jason_lopatecki, @aparnadhinak, and the entire Arize team!
When we led Arize's seed in 2020, they were setting out to fix a specific problem - AI models in production degrade, dashboards say everything is fine, and no ason had lived this problem running an ML team at Adobe and Aparna had felt it at Uber.
Today, every company building with AI feels this pain.
But the path here was not linear.
After ChatGPT, four things changed at once:
Teams stopped training models and started building on APIs. The buyer shifted from ML data scientist to AI engineer. Failures went from statistical drift to non-deterministic answers. And with no right answer to check against, observability became defining what a good answer looks like - and testing for it continuously.
Meeting that shift meant re-engineering the product, sales motion, marketing, and pricing - all at the same time. Each of those is a bet-the-company project on its own. Doing all of them at once is among the hardest things I've watched a founding team pull off.
Today, Arize runs inside Uber, Instacart, PagerDuty, Atlassian, and Reddit.
And the bigger opportunity is still ahead.
An agent is like a new employee, it needs feedback before it can really create value. Evals and observability are how companies close that loop - and end up with an agent that gets smarter every time it runs.
Jason and Aparna: excited to watch what you build with Dynatrace - the agent era is going to need it more than ever.
More in my blog post: foundationcapital.com/ideas/making-a…
Congratulations @jason_lopatecki, @aparnadhinak, and the entire Arize team!
When we led Arize's seed in 2020, they were setting out to fix a specific problem - AI models in production degrade, dashboards say everything is fine, and no ason had lived this problem running an ML team at Adobe and Aparna had felt it at Uber.
Today, every company building with AI feels this pain.
But the path here was not linear.
After ChatGPT, four things changed at once:
Teams stopped training models and started building on APIs. The buyer shifted from ML data scientist to AI engineer. Failures went from statistical drift to non-deterministic answers. And with no right answer to check against, observability became defining what a good answer looks like - and testing for it continuously.
Meeting that shift meant re-engineering the product, sales motion, marketing, and pricing - all at the same time. Each of those is a bet-the-company project on its own. Doing all of them at once is among the hardest things I've watched a founding team pull off.
Today, Arize runs inside Uber, Instacart, PagerDuty, Atlassian, and Reddit.
And the bigger opportunity is still ahead.
An agent is like a new employee, it needs feedback before it can really create value. Evals and observability are how companies close that loop - and end up with an agent that gets smarter every time it runs.
Jason and Aparna: excited to watch what you build with Dynatrace - the agent era is going to need it more than ever.
More in my blog post: foundationcapital.com/ideas/making-a…
Aug 13, 2026 · 5:36 PM UTC
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@ashugarg @jason_lopatecki @aparnadhinak Watching a category emerge from nothing is rare. We actually went deeper on what made AI observability so essential by 2026: x.com/AGTPinsights/s…
Dynatrace just agreed to buy AI observability company Arize for $915 million. Here's what you need to know.
Dynatrace (NYSE: DT) signed a definitive agreement to acquire Arize, the AI observability and evaluation platform co-founded by Jason Lopatecki and Aparna Dhinakaran in sh-and-stock transaction, with about $815 million in cash and the rest in replacement equity awards for Arize employees joining Dynatrace.
Arize's platform helps teams trace AI applications, run evaluations, detect hallucinations, and monitor AI agents and models in production. Its customers include Uber, Instacart, PagerDuty, and Atlassian.
Key numbers:
- Deal value: $915 million
- Cash portion: ~$815 million
- Expected impact: +200 basis points to Dynatrace's FY27 ARR growth
- Expected impact: -175 basis points to non-GAAP operating margin
The transaction is expected to close later this quarter or early in Dynatrace's third fiscal quarter, subject to regulatory review. Arize's seed round in 2020 was led by Foundation Capital.
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