Sazabi announced that it raised an $8 million seed round to build an AI-native observability platform for fast-moving engineering teams. The round was led by J2 Ventures, Village Global, and Y Combinator, with participation from Orange Collective and more than 60 angel investors from AI, developer tools, and infrastructure companies. Investors included angels from Vercel, Cursor, LangChain, OpenAI, Anthropic, GitHub, Replit, Browserbase, and others.
Sazabi plans to use the funding to expand its engineering team, accelerate product development, and deepen integrations across modern cloud and developer platforms.
The company is building observability tools for software teams operating in an AI-driven development environment. Sazabi said traditional dashboards, manual instrumentation, noisy alerts, and manual incident response workflows are increasingly unable to keep pace with faster software shipping cycles and continuously changing production systems.
Instead of requiring engineers to configure complex telemetry stacks and search through dashboards during incidents, Sazabi uses AI agents to understand a team’s logs, infrastructure, and codebase. The platform is designed to proactively detect, investigate, and resolve production issues.
Sazabi’s approach is built around a logs-first architecture. The company treats log data as the primary source of truth for understanding production systems, using AI to reconstruct the views engineers need from log data rather than splitting workflows across logs, metrics, and traces.
Since its public launch, Sazabi has seen early traction among AI-native engineering teams. In closed alpha, the company onboarded 50 new teams in two weeks, ran 8,000 background investigations, detected 2,000 issues, and opened 200 pull requests against customer code repositories.
Sandstone, a legal software company, adopted Sazabi to support its transition from rapid shipping into a stronger reliability culture. The company said Sazabi helped catch issues that may have otherwise gone unnoticed and enabled useful alerts quickly after onboarding.
Sazabi was founded by Sherwood Callaway, a two-time Y Combinator founder and software engineer with more than a decade of experience building infrastructure and observability systems at companies including Brex and Crunchbase.
The Sazabi team includes early members of the Brex infrastructure engineering team and former founders in the observability sector.
Founded in 2025 and based in San Francisco, Sazabi is currently onboarding new customers.
KEY QUOTES:
“AI has changed how software gets written. Now it is changing how software gets operated. The first half of software engineering has been transformed by tools like Cursor, Claude Code, and Codex. But the second half — monitoring, debugging, incident response, and reliability — is still stuck in the pre-AI era. Sazabi is rebuilding observability from first principles for a world where agents are part of every engineering team.”
Sherwood Callaway, Founder and CEO of Sazabi
“Sazabi caught issues we otherwise would have missed and fixed them before customers noticed. It’s like having an extra engineer on call who reads every logline. We onboarded in 15 minutes and started receiving useful alerts immediately.”
Liam Germain, CTO at Sandstone
“Sherwood is the kind of founder I back without hesitation. A technical, second-time founder with clear product vision and deep subject-matter expertise. Sazabi reminds me of Graphite in the early days.”
Hunter Walk, Founding Partner at Homebrew
“Software systems are becoming increasingly probabilistic and dynamic. Existing observability tools were built for a far more deterministic world. If Datadog defined observability during the cloud-native era, Sazabi is defining it for the AI-native one.”
Christine Keung, General Partner at J2 Ventures
