Sazabi has raised $8 million to expand its AI observability platform.
The San Francisco-based startup says its monitoring, debugging, and incident response platform is designed for fast-moving engineering teams at startups using AI coding tools like Cursor and Claude Code.
Founder and CEO Sherwood Callaway, a former Brex engineer, said he noticed that existing platforms were overwhelming software engineers with unnecessary dashboards and datasets. He realized the only thing that was really necessary was log data — a digital back box that keeps a time-stamped record of actions and errors within an application.
“Whenever there was a problem in production, I would reach for a log stream,” said Callaway, a second-time founder “So it first occurred to me that was interesting, that this is the sort of type of data that felt most intuitive to me.”
The startup was part of Y Combinator’s spring 2026 batch and came out of stealth in mid-March. Its $8 million seed round was led by J2 Ventures, Village Global, and Y Combinator, with participation from over 60 angel investors who work at companies like Cursor, OpenAI, Anthropic, and Replit.
The company competes with legacy observability platforms like Datadog and Grafana.
“We sometimes joke internally that the company is called Operation Waterloo,” Callaway said. “This is because Datadog is a French company, and so we want to beat Datadog. That’s our core mission.”
The platform’s pricing starts with a free tier, followed by a credit-based system that depends on the amount of tokens Sazabi is using and the amount of logs a customer sends.
The company plans to use the cash to support its team of eight employees and grow its engineering and go-to-market operations. It has paying customers as part of a closed alpha round and plans to launch to the public this summer.
“We have a clear and unique product vision, but we don’t have the luxury of time,” Callaway said. “We need to deploy capital and execute on it as quickly as possible.”
Check out the pitch deck Sazabi used to secure the fresh funding:
