ServiceNow is expanding its AI controls by acquiring Traceloop, integrating its OpenLLMetry-based observability platform to automate testing and monitoring of AI agents before deployment updates.

Traceloop’s real-time evaluation enables enterprises to monitor AI agents in live environments, helping ensure reliability, regulatory alignment, and risk mitigation as AI usage scales.

Built on OpenLLMetry, Traceloop focuses on automated agent performance evaluations to improve AI observability and governance, reducing trial-and-error testing.

ServiceNow confirmed the acquisition of Israeli AI startup Traceloop for an estimated range of $60 million to $80 million to bolster its AI governance capabilities.

The deal highlights rising competition in AI trust, safety, and governance as enterprises demand auditable, compliant AI systems.

Terms of the deal were not disclosed by ServiceNow, with media estimating the price based on Calcalist reporting.

The acquisition fits ServiceNow’s pattern of aggressive M&A activity, joining past deals with Armis Security and Pyramid Analytics.

Traceloop previously raised about $6.1 million and counts IBM, HiBob, Miro, and Dynatrace among clients, with founders Nir Gazit and Gal Kleinman bringing Fiverr and Google backgrounds; the company is a Y Combinator alumni.

Founders Nir Gazit (CEO) and Gal Kleinman (CTO) previously held roles at Fiverr and Google, respectively, and the company is a Y Combinator alumnus.

Traceloop has raised $6.1 million from investors including Sorenson Capital, Ibex Investors, Samsung NEXT, Y Combinator and Grand Ventures, serving customers such as IBM, HiBob, Miro, and Dynatrace.

A CEO blog post corroborates the deal value of roughly $60–$80 million for Traceloop, the Israeli AI agent technology provider.

Acquiring Traceloop provides ServiceNow immediate expertise and accelerates product roadmaps, reflecting a trend toward AI infrastructure plumbing across enterprises.