Arize AI has successfully raised $70 million in Series C funding, marking the largest investment in the AI observability sector to date. The funding aims to enhance AI infrastructure, focusing on tools that improve the evaluation and troubleshooting of AI systems, particularly in real-world applications. The investment comes at a time when AI adoption reached $13.8 billion in 2024, highlighting the growing demand for effective AI performance assessment. Founders Jason Lopatecki and Aparna Dhinak are committed to developing solutions that address the challenges enterprises face in understanding whether their AI systems are functioning as intended. The funding will support the expansion of Arize AI's capabilities, including the development of an AI Copilot and the open-source platform ArizePhoenix for evaluation and tracing of AI models.