I worked at Observe ~2 years ago in a field engineering role, and have also been in/around the Snowflake ecosystem since 2018ish.

No current affiliation with either company.

Can't comment on the demand-side of the acquisition due to confidentiality, but on the supply-side, i.e. what Snowflake gets from Observe as a product - I think it has much more to do with underlying architecture than anything directly related to AI.

But architecture doesn't sound as sexy as AI...