Grafana Labs has surpassed $600 million in annual recurring revenue and more than 10,000 customers worldwide as adoption of its AI-powered observability products accelerates.
The company said growth is being driven by expansion of Grafana Cloud as well as newer AI products including Grafana Assistant, Assistant Investigations and Adaptive Telemetry.
More than 18,000 organizations across paid and free plans are now actively using Grafana Assistant, the company’s context-aware AI agent for exploring and troubleshooting observability data.
Grafana Labs said a majority of new self-service and contracted customers during the first half of 2026 used Grafana Assistant to accelerate onboarding and improve time to value.
The company is benefiting from two AI-related trends.
Engineering teams increasingly want AI tools that can help them analyze and troubleshoot their existing systems, while organizations deploying AI applications also need new tools to monitor AI models and agents themselves.
Grafana Labs’ 2026 Observability Survey found that 57% of organizations are implementing large language model observability in some capacity.
That can include tracking issues such as model drift, unexpected agent behavior, token consumption, latency and errors.
The company’s customer relationships are also expanding across more of the Grafana platform.
Average products used by contracted customers nearly doubled over two years, increasing from 2.3 to 4.4.
Approximately 87.8% of contracted customers now use at least two Grafana products, while 64.9% use four or more.
Grafana Cloud usage has increased significantly as well.
Monthly active Grafana Cloud users rose from approximately 127,000 to more than 251,000 over the past two years.
More than 1.1 million distinct users logged into Grafana Cloud during that period.
Monthly active self-service organizations increased from approximately 42,000 to 66,000.
Grafana Labs also generated more than 500,000 Grafana Cloud signups during the past two years.
The company sees its free tier as an increasingly important entry point as AI makes it easier for engineering teams to instrument and monitor infrastructure.
Grafana Labs has simultaneously expanded the amount of AI technology embedded directly into its platform.
During its inaugural AI Week in July, the company moved six capabilities into general availability.
Grafana Assistant Investigations uses multiple AI agents to examine observability environments after incidents occur.
The technology correlates metrics, logs and traces to generate investigation reports and help engineering teams identify potential causes of failures.
Grafana Agent Observability focuses on monitoring AI agents and models themselves, including metrics such as latency, token usage, costs and agent decision behavior.
Grafana Cloud MCP Server and its gcx command-line interface enable AI agents and coding tools to interact directly with Grafana Cloud.
Grafana Assistant Workspace provides engineers with a full-page environment for interacting with the assistant, exploring information and creating visualizations.
Grafana Assistant Automations allows teams to save prompts and schedule them to run repeatedly, turning one-time investigations into recurring operational checks.
The company is also using AI to reduce the amount of observability data organizations need to retain.
Grafana Cloud’s Adaptive Telemetry suite has optimized away approximately 28.5 billion metric series and reduced log volumes by 26 petabytes.
Grafana Labs said Adaptive Telemetry can reduce telemetry costs by approximately 30% to 50% on average without eliminating information teams rely on.
Beyond AI, the company has continued expanding its broader observability platform.
Recent products and updates include Grafana Cloud Knowledge Graph, Grafana Bring Your Own Cloud, Grafana Federal Cloud, Grafana 13 and Mimir 3.0.
Grafana Labs was also named a Leader in the 2026 Gartner Magic Quadrant for Observability Platforms for the third consecutive year and was positioned furthest for Completeness of Vision for the second straight year.
The company’s customers include Anthropic, Bloomberg, NVIDIA, Microsoft and Salesforce.
Grafana Labs operates as a fully remote company with employees across more than 40 countries and is backed by investors including Lightspeed Venture Partners, Sequoia Capital, GIC, Coatue, J.P. Morgan, CapitalG and Lead Edge Capital.
KEY QUOTES:
“Every organization is at a different stage of the observability journey, but AI has added new obstacles to navigate that weren’t there before: Are you using AI to observe your systems, and do you also need to observe the AI itself? The honest answer, for almost everyone now, is both, and that’s what’s driving the growth behind these milestones.”
Anthony Woods, Co-Founder Of Grafana Labs
“What stands out this year isn’t just that customers are adopting AI, it’s that they’re going deeper with us once they do. The average customer now runs more than four of our products, up from just over two years ago, and that’s not an accident. When teams bring AI into production, they don’t want another point solution bolted on; they want a platform they can grow into. Crossing 10,000 customers tells us that bet is paying off.”
Raj Dutt, Co-Founder And CEO Of Grafana Labs
“The economics of observability break down when every new AI workload just adds more data to store and more noise to sort through. Adaptive Telemetry exists so cost scales with the value of your data, not the volume of it. This matters more as AI systems generate telemetry at a pace no team can review manually.”
Tom Wilkie, CTO Of Grafana Labs
