Groundcover, an observability startup, announced it raised $100 million in a round led by One Peak, bringing its total funding to $160 million. The company reports more than 250 paying customers and tripled annual recurring revenue over the past year, positioning itself against established platforms like Datadog, Dynatrace, New Relic, Splunk and Grafana. Groundcover argues that artificial intelligence has fundamentally changed the assumptions those platforms were built on, as AI systems become more autonomous, produce vastly more telemetry and increasingly participate in software operations. The company contends that observability architecture itself needs to change, since AI-assisted development accelerates deployment cycles and enterprises are operating AI agents that execute multi-step workflows, call external tools and interact with production systems. These activities generate an explosion of operational data that organizations want to retain, adding layers of observability beyond traditional infrastructure monitoring, including prompt execution, model latency, token consumption, retrieval pipelines, tool invocations and agent behavior. This creates tension with pricing models that charge according to the amount of data ingested, and historically engineers have often responded by sampling.