Traceloop

From machine learning systems to monitoring agents

Traceloop was founded by Nir Gazit and Gal Kleinman. The company's Y Combinator profile gives 2023 as its founding year, Tel Aviv as its location, and participation in the accelerator's Winter 2023 batch. Gazit previously worked at Google and Fiverr, and Kleinman led a development group at Fiverr. In March 2026 Gazit wrote that their experience with machine learning systems led them to a similar problem in language applications: it is hard to understand what happened inside the system when the result is wrong. The company built a logging and monitoring tool, and added a quality evaluation product on top of it.

Recording the actual calls

The company's open foundation is OpenLLMetry, which is built on OpenTelemetry. According to the official documentation, you can add a library inside the application, or route calls to models through Traceloop Hub, an intermediary server. The system records the execution path of requests and sends real-time alerts about the quality of the answers. The documentation also describes gradual rollout of changes to users, replaying problems found with users, and testing changes to models and prompts. This lets a developer go back to a request that caused a failure and check it in their own work environment, along with a record of the actions that were taken.

How the quality of an answer is measured

Gazit describes faithfulness and relevance checks on real traffic, along with training custom evaluators on the organization's data. Faithfulness checks the link between the answer and the information it relies on. Relevance is about how well it fits the request. The platform adds detection of quality decline and experiment tools for comparing models or wordings. In its accelerator profile, the company explains that general benchmarks do not always predict behavior on a real task. So the testing is done both before a version is released and while it is running, based on the application's own use cases and not only on a public test.

Funding and commercial use

On 2 March 2026 CTech reported that Traceloop had raised $6.1 million up to that point. Its investors included Sorenson Capital, Ibex Investors, Samsung NEXT, Y Combinator and Grand Ventures. According to the report, its customers at the time included IBM, HiBob, Miro and Dynatrace. Gazit wrote separately that IBM and Microsoft had adopted OpenLLMetry. Adoption of the open library and use of the commercial product appear in the sources as separate descriptions. The library lets teams build call logging into their own systems, and the product adds monitoring and evaluation tools.

An acquisition completed in 2026

In March 2026 Gazit announced that the company was joining ServiceNow and that its technology would be built into AI Control Tower. On 5 May 2026 ServiceNow confirmed that the acquisition had recently been completed. The buyer described runtime monitoring of agent behavior as part of expanding its product. In his announcement Gazit committed to keeping OpenLLMetry open source, and said the company intends to honor existing commitments to customers and to give advance notice of changes to the product roadmap. The financial terms of the deal were not published. The May announcement confirms completion, without giving the exact closing date.