ServiceNow agreed to acquire Traceloop, an Israeli start-up that monitors and evaluates the behaviour of AI agents, its chief executive said in a blog post on 2 March.
Why ServiceNow, Inc. is buying Traceloop
ServiceNow folded Traceloop into AI Control Tower, its product for discovering, governing and measuring AI systems across an enterprise, saying the combination would provide deeper observability of AI agent behaviour at runtime.
Deal terms and financing
Financial terms were not disclosed. Calcalist estimated the price at $60m to $80m. Traceloop's backers included Sorenson Capital, Ibex Investors, Samsung NEXT, Y Combinator and Grand Ventures.
Regulatory approvals and timing
ServiceNow described the acquisition as recently completed in a May 2026 press release on AI Control Tower.
Market context
Calcalist reported that the deal was ServiceNow's third Israeli acquisition in under three months, after its $7.75bn purchase of Armis Security and the purchase of Pyramid Analytics, and that it went ahead during the war with Iran. Traceloop's customers included IBM, HiBob, Miro and Dynatrace.
