Dynatrace has signed a definitive agreement to acquire Arize in a cash and stock transaction valued at $915 million. Together, Dynatrace and Arize will enable customers to evaluate, operate, and continuously improve AI applications from development through production at scale.
Dynatrace acquires Arize for $915M in cash and stock.
Arize is category leader in AI Observability for LLMs and agents.
Combined solution covers AI lifecycle from experimentation to production.
AI Observability market projected to exceed $10B by 2030.
Arize founders Jason Lopatecki and Aparna Dhinakaran will join Dynatrace.
Expected to be ~200 basis points accretive to ARR growth.
AI Observability spans the full lifecycle of an AI application, from experimentation and evaluation before release, to tracing how LLMs, agents, and orchestration layers behave in production. It connects that behavior with application performance, GPU utilization, infrastructure health, and business processes. Today, AI software delivery is fragmented, with AI engineering teams evaluating model behavior in one set of tools while teams running applications and infrastructure work in another. Dynatrace's acquisition of Arize will eliminate that fragmentation and provide end-to-end observability from development to production.
Arize is the category leader in AI Observability, purpose-built for AI and agents and trusted by Fortune 500 enterprises and AI-native builders alike. Arize combines a strong developer brand and thriving open source community with enterprise-grade frameworks that teams need to detect hallucinations, measure output quality, and continuously validate AI behavior. It is the only platform that is simultaneously OSS-native and stack-agnostic across every major AI framework and model provider.
"AI is now moving into production at incredible speed, and the resulting AI Observability market opportunity is enormous. Dynatrace anticipates customers' needs at critical inflection points, and this is one of the most significant in our history," said Rick McConnell, CEO, Dynatrace. "Acquiring Arize advances our AI observability leadership, accelerates our roadmap, enhances our long-term growth profile, expands our reach with the developer community, and adds an incredible AI-first team to Dynatrace."
"We founded Arize because AI teams needed a way to know their agents were actually working correctly, not just running," said Jason Lopatecki, CEO, Arize. "Joining Dynatrace will enable us to take that mission much further. Together, we can bring AI evaluation and software observability into an end-to-end system, enabling teams to build more ambitious AI applications faster. This is the kind of innovation that only happens when two companies with highly complementary solutions and go-to-market models come together, setting a new bar for what AI Observability can deliver for the entire industry."
About Dynatrace
Dynatrace is advancing observability for today's digital businesses, helping to transform the complexity of modern digital ecosystems into powerful business assets. By leveraging AI-powered insights, Dynatrace enables organizations to analyze, automate, and innovate faster to drive their business forward.
About Arize
Arize is a unified AI observability and LLM evaluation platform that helps teams develop and maintain more successful AI. Arize's automated monitoring and observability platform allows teams to quickly detect issues when they emerge, troubleshoot why they happened, and improve overall performance across both traditional ML and generative use cases.
