Tsuga raises $10 million to reinvent AI observability
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Tsuga raises $10 million to reinvent AI observability

Startup emerges from stealth with BYOC platform to cut costs and secure AI era telemetry

11/5/2025
Ali Abounasr El Alaoui
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Tsuga has emerged from stealth with a 10 million dollar seed round led by General Catalyst, joined by Singular. The company says it will reimagine observability for the AI era by pairing cloud scale with full customer control. Its promise is an end to missing data, runaway costs, and trade-offs between convenience and governance.


The problem with observability

Enterprises rely on observability to keep systems reliable, yet the current landscape is fragmented and costly. Traditional SaaS platforms bill in ways that grow with every host and gigabyte, which many executives see as misaligned with business outcomes. Open source stacks offer control but demand heavy engineering effort, leading teams to sample or discard telemetry and lose insights they can never recover.

AI pressure on telemetry

Data volumes in logs, metrics, and traces have been rising faster than IT budgets for years. AI driven development, autonomous code, and ephemeral microservices are multiplying telemetry beyond what existing stacks can absorb. Tsuga argues the result is inefficiency, operational risk, and an urgent need for a new foundation that can handle hyperscale while delivering actionable intelligence.

Introducing Tsuga

Founded in 2024, Tsuga positions its platform as a way for teams to focus on their mission rather than chasing alerts and managing tool sprawl. The company says it was built from the ground up to capture everything without compromise, removing the need to choose between control and convenience. At the center of the approach is a bring your own cloud deployment that keeps data within the customer’s environment.

Architecture and pricing

Tsuga deploys into a customer’s own cloud account on providers such as AWS, Google Cloud, or Azure. By avoiding third party data transfer and storage markups, the company claims observability costs become predictable and scale sublinearly rather than exponentially. Telemetry can be stored as long as needed under a single transparent pricing model across the platform.

Security and governance

Because operational data never leaves the customer’s environment, Tsuga says compliance and data sovereignty are simplified. A unified administration layer provides retention policies, access controls, and routing rules without the overhead of managing infrastructure. The platform is fully managed by Tsuga, while customers retain ownership of data and decisions.

Openness and AI native capabilities

Tsuga relies on open source collectors such as OpenTelemetry and supports open data formats. Customers can route telemetry to data lakes or AI and machine learning pipelines at any time, which aims to reduce lock in and expand long term value. With full context across systems, Tsuga says it can move from passive monitoring to intelligent prevention and rapid resolution.

Team and investors

Tsuga was co founded by Gabriel-James Safar and Sébastien Deprez, who previously started Madumbo, later acquired by Datadog, and then led product and engineering initiatives at Datadog. Early team members include Nils Bunge, formerly a Director of Product Management at Datadog, and Valentin Jacquemont, an early European sales hire at the same company. The round includes angels such as Amjad Masad, Charles Gorintin, Jonathan Benhamou, Olivier Bonnet, and Philippe Corrot, with advisors Renaud Boutet and Emmanuel Gueidan.

Early traction and customers

Before its public launch, Tsuga says the platform was adopted by design partners across frontier technology, financial services, and media. These early users are positioned to test the model at scale while offering product feedback on reliability, governance, and cost outcomes. The company plans to focus new funding on product innovation and customer success.


Tsuga is entering a crowded market with a thesis that observability must be AI native, cost predictable, and customer controlled. If the bring your own cloud architecture and open data stance deliver as advertised, the company could narrow the gap between visibility and value. With fresh capital and experienced operators, the next phase will hinge on measurable outcomes for enterprises that are scaling fast.