Tsuga announced that it has raised $35 million in Series A funding. The round included backing from Singular, General Catalyst, DST Global, QuantumLight, Picus Capital, and Databricks.
Tsuga is building an AI-native resilient observability platform designed to give organizations complete visibility into their systems without requiring telemetry data to leave their cloud environments.
The company said traditional observability models have become increasingly difficult for customers as infrastructure scales. Many existing vendors ingest telemetry, store it in their own clouds, and charge customers more as usage grows.
Tsuga said the AI era has made this model harder to sustain because organizations are facing rising costs, limited coverage, and governance concerns as AI interaction data flows into third-party clouds.
Tsuga’s platform is designed to deploy inside a customer’s cloud so data remains within the customer’s environment.
The company said its forward-deployed engineers work alongside customer teams to continuously tune observability systems, with the goal of reducing costs over time rather than allowing them to compound.
Tsuga also said its AI capabilities run on customer data inside the customer’s perimeter, enabling organizations to gain value from AI without sending sensitive telemetry or interaction data outside their environment.
The company describes its approach as AI-Native Resilient Observability, focused on providing visibility at AI-era scale while keeping data under customer control.
Tsuga said it is positioning the platform as a replacement for legacy observability architectures built around centralized vendor-controlled telemetry storage.
