# Dynatrace to buy AI observability startup Arize for $915M

> Source: <https://app.dealroom.co/news/note/dynatrace-to-buy-ai-observability-startup-arize-for-915m>
> Published: 2026-08-15 03:49:18+00:00

**What's the deal?** [Dynatrace](https://app.dealroom.co/companies/dynatrace) (NYSE: DT) has signed a definitive agreement to acquire [Arize AI](https://app.dealroom.co/companies/arize_ai) in a cash and stock transaction valued at $915 million. The deal pairs Dynatrace's AI-powered observability platform with Arize AI's tools for evaluating and monitoring AI applications, spanning development through production.

**What does each company do?** Dynatrace sells observability software that tracks application performance, infrastructure health, and business processes. Arize AI is an AI observability platform for AI and agents, with an open-source community and enterprise frameworks for detecting hallucinations, measuring output quality, and validating AI behavior.

**What's the endgame?** The acquisition is intended to combine AI evaluation with application performance and business observability, giving customers end-to-end coverage from experimentation and deployment readiness through runtime evaluation.

**Why now?** Dynatrace says AI observability is a fast-growing category projected to exceed $10 billion by 2030, as AI applications move into production and teams need to keep them accurate, reliable, and cost-efficient.

**Read more:** [MarketScreener](https://www.marketscreener.com/news/dynatrace-to-acquire-ai-observability-leader-arize-ce7859d9dd8ff223)

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