ServiceNow is continuing to expand its presence in Israel by buying Israeli startup Traceloop. The announcement was shared in a blog post by ServiceNow’s CEO.
The company did not reveal the exact price of the deal, but reports estimate that the acquisition is worth between $60 million and $80 million.
Traceloop has raised a total of $6.1 million from investors. These include Sorenson Capital, Ibex Investors, Samsung NEXT, Y Combinator, and Grand Ventures.
At the time it was acquired, Traceloop was working with major companies such as IBM, HiBob, Miro, and Dynatrace.
Traceloop was founded about two and a half years ago by CEO Nir Gazit and CTO Gal Kleinman. Before starting the company, Gazit worked as Chief Architect at Fiverr and earlier led machine learning engineering teams at Google.
Kleinman also previously worked at Fiverr, where he managed a data development team and held senior engineering roles. Traceloop is also part of the Y Combinator alumni network, meaning it went through the well-known startup accelerator program.
“We’re joining a team that shares our belief that AI observability isn’t optional. It’s foundational,” Gazit wrote in a blog post. “As enterprises deploy more AI agents, more models, and more complex workflows, the need for visibility and governance only grows. Inside ServiceNow, we’ll have the platform, the reach, and the resources to build the observability and evaluation layer that enterprise AI demands. Together, the combination of Traceloop and ServiceNow AI Control Tower will power deeper observability to drive intelligent governance workflows.”
“ServiceNow acquiring Traceloop is a textbook example of a platform giant seeing an inflection point before the rest of the market,” said Aaron Rinberg, Partner at Ibex Investors. “This has been bubbling for a little while now, nothing to do with the other geopolitical headlines. Traceloop reinvented how teams observe and validate AI driven systems. Plugging this into ServiceNow’s enterprise footprint is going to reshape what ‘reliability’ means at scale.”
Traceloop has created a special monitoring and testing system for products that use large language models (LLMs).
In simple words, its platform helps developers see how AI models actually perform in real-life situations. Instead of testing models only with standard or theoretical benchmarks, Traceloop allows companies to check how their AI works in practical, everyday use cases.
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