Arize AI Lands $70M Funding to Advance AI Observability Technology
Arize AI, a leading company in AI observability and LLM evaluation, has secured a $70 million Series C funding round, marking one of the largest investments in AI observability to date. The funding aims to address critical issues with LLMs and AI agents in real-world applications.
The investment was led by Adams Street Partners, with participation from M12 (Microsoft’s venture fund), Sinewave Ventures, OMERS Ventures, Datadog, PagerDuty, Industry Ventures, and Archerman Capital.
Arize AI’s recent research initiative, OpenEvals, has highlighted the challenges LLMs face in accurately evaluating synthetic datasets—data generated by other AI models—compared to non-synthetic data. The study underscores that LLMs remain unpredictable, difficult to troubleshoot, and prone to failures.
To counter these challenges, Arize AI’s platform empowers organizations to course-correct AI systems before they lead to real-world failures, ensuring reliability and accuracy in deployment.
Jason Lopatecki, CEO and co-founder of Arize AI, emphasized the importance of AI stability: “Building AI is easy. Making it work in the real world is the hard part. Enterprises can’t afford to deploy unreliable AI.” He pointed out that engineering teams need strong infrastructure to test and debug their models before customer impact.
Arize AI’s platform has been adopted by major enterprises like Uber, Duolingo, and TripAdvisor. The company also highlights that its open-source AI observability tool, Arize Phoenix, is the most widely used evaluation library for AI development.
Arize AI also announced plans to strengthen its partnership with Microsoft, with M12’s investment driving deeper integrations with the Azure AI platform.
Aparna Dhinakaran, Chief Product Officer and co-founder of Arize AI, shared the company’s vision: “As AI research and real-world applications accelerate, Arize will continue to pioneer new tools, like our recent first-to-market launch of audio evaluation for voice assistants, to help engineers better evaluate, debug, and improve their systems.”
As companies increasingly explore AI-driven solutions to enhance AI performance, Arize AI is positioned to lead advancements in AI observability, evaluation, and debugging—ensuring that AI systems remain accurate, reliable, and scalable in real-world settings.
