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National Observer
2 days ago
- Politics
- National Observer
A tale of two pension funds: one abandons net-zero, the other doubles down on climate action
Temperatures soared across Ontario this week, hitting record highs as a heat dome settled over the province. And at Tecumseh Public School in Burlington, one Grade 4 student had a question on his mind. 'Will I be alive in 2100?' Jennifer Reid, the student's teacher, said she was struck by the question. The child would be 85 at the turn of the next century. 'Yeah, I think you'll be alive then,' she told him. 'But then the question is, what is the world going to look like in 2100?' she said in an interview with Canada's National Observer. Extreme heat, made more common and more severe due to fossil fuel-driven climate change, meant children were 'suffering outside' during recess this week, she said. Across the province, many children are simply unable to go to school or get picked up early because the heat is just too unbearable, she said. Reid says that as an educator, she found the student's question interesting to think about because while 2100 may feel far away, there is nonetheless an 'urgency [to] the question.' That child, and millions like him, will be collecting their pensions in the decades to come. And while many think of retirees when they think of pensions, public pension plans have a legal fiduciary duty to act in the best interests of all their members — not simply the ones actively collecting right now. A tale of two pension funds: 'While one is advancing credible, science-based action to protect pensions and the planet, the other is retreating under the guise of regulatory caution.' said Carol Liao, chair of the Canada Climate Law Initiative. It's against the backdrop of pension plans and climate change that Reid was speaking to Canada's National Observer. As a worker paying into the Canada Pension Plan, she called it 'very worrying, concerning and disappointing' that the fund, which manages the retirement savings of 22 million Canadians, has chosen to abandon its commitment to net-zero emissions by 2050. The most recent annual report from Canada Pension Plan Investment Board (CPPIB) said its decision to ditch net-zero targets was due to 'recent legal developments in Canada' — a likely reference to the federal anti-greenwashing rules put forward in the Competition Act, known as C-59, last year. Those rules require companies making green claims, like reaching net-zero, to substantiate them using internationally recognized methodology. 'There is increasing pressure to adopt standardized emissions metrics and interim targets, many of which don't reflect the complexity of a global investment portfolio like ours,' the CPPIB said at the time. 'Forcing alignment with rigid milestones could lead to investment decisions that are misaligned with our investment strategy. 'To avoid that risk — and to remain focused on delivering results, not managing legal uncertainty — we have made a considered decision to no longer maintain a net-zero by 2050 commitment.' Mere weeks after the CPPIB walked back its net-zero target, the country's next-largest public pension fund, the Caisse de dépôt et placement du Québec (CDPQ), published its climate action plan and related transition financing framework which doubled down on climate action — effectively blowing a hole through the rationale the CPPIB put forward. The Quebec pension fund announced its goal to invest $400 billion in climate action by 2030 and explicitly linked its investing framework to internationally recognized metrics. To incentivize action, it also linked executive compensation to meeting its climate targets. 'This is what credible climate-aligned governance looks like in practice, and the contrast between CDPQ and CPPIB couldn't be starker,' said Carol Liao, an associate professor at the University of British Columbia's Allard Law School, co-director of the UBC Centre for Climate Justice, and chair of the Canada Climate Law Initiative. 'While one is advancing credible, science-based action to protect pensions and the planet, the other is retreating under the guise of regulatory caution.' Oily boardroom While the CDPQ and CPPIB are comparable in many ways — both are major global investors with hundreds of billions in assets, both manage retirement savings for millions of people and both are subject to the same financial regulations in Canada — there is at least one area where they are quite different: board membership. Three of the 10 members of CPPIB's board of directors also sit on the boards of fossil fuel companies. The CDPQ, by contrast, does not have any board directors who also sit on the board of a fossil fuel company. CPPIB's board includes Barry Perry (former CEO of Fortis) who now sits on the board of Capital Power; Judith Athaide who also sits on the board of Kiwetinohk Energy, and Ashleigh Everett who is also the president and a director of Royal Canadian Securities, a holding company for Domo Gasoline Corporation. The CPPIB declined to comment when asked how it is ensuring its leadership is acting in the best long-term interest of its members, what it makes of its peer CDPQ taking an opposite strategy, and if it has information demonstrating what steps it is taking to protect the retirement savings of Canadians through the energy transition. Marcus Taylor, a professor of global development studies at Queen's University, a contributing author to the Intergovernmental Panel on Climate Change, and a contributor to the Canada Pension Plan said in a statement that he was 'disappointed' to learn about the board's ties to the fossil fuel industry. 'I can't help but wonder if these fossil fuel interests influenced CPPIB's decision to abandon net-zero by 2050 and continue investing billions in oil and gas expansion.' The findings were identified in a study published Thursday by pension watchdog Shift. Patrick DeRochie, senior manager with Shift, told Canada's National Observer the presence of fossil fuel-linked board members raises conflict of interest concerns. 'When a board is looking at and approving a decision like backing away from a net-zero commitment or developing a climate strategy, what does it mean when you have someone who has a legal obligation to Fortis in that room, or RBC in that room?' he said. With US$132.4 billion invested in fossil fuels since 2021, RBC is the top fossil fuel financing bank in Canada, and the world's eighth largest in a global ranking published in the annual Banking on Climate Chaos report. 'You have one legal obligation that relies on financing fossil fuel companies, expanding gas pipelines, prolonging and expanding the use of fossil fuels — and you have the other that has a legal obligation to a 25-year-old who won't retire until 2060 or 2070 and needs to rely on climate stability to be able to collect their pension,' he said. Beyond the fiduciary obligations, DeRochie said it's also worth considering what views are informing the pension plans' investing strategies. 'Are they coming in there and spewing propaganda from the fossil fuel industry when they're making a decision about a pension plan's net-zero policy, or are they actually grounding their investment and [asset-management] decisions in climate science?' he said. 'Those are two very different things, and I have no reason to believe that somebody who is on the board of RBC or a fossil fuel company is treating climate change with the urgency and severity that it's shown to be.' Liao said because pension funds manage the retirement savings of millions of Canadians, their ability to deliver long-term returns is fundamentally linked to climate stability — so credible, sustainable governance of pensions requires aligning long-term investing strategies with climate science. 'Climate risk is financial risk, and ignoring that reality is a failure of governance,' she said, adding that 'climate alignment isn't a PR exercise; it's a long-term, risk-management imperative.' One of the most pressing financial risks are stranded assets: fossil fuel assets like pipelines, LNG terminals, and oil and gas fields that could be worth significantly less than expected — meaning investors won't recoup the money they've sunk into them. In a study published Wednesday, the International Institute for Sustainable Development and Environmental Defence found two-thirds of future fossil fuel investments made by companies, typically financed by banks, pension funds and asset managers, are at risk of becoming stranded if the world achieves its climate targets. 'Restricting oil and gas development would protect the Canadian economy from overinvesting in soon-to-be surplus assets, regardless of whether global climate ambition increases,' the report found. The findings add to a mountain of evidence that the stranded asset issue is pressing for Canadians, including a 2022 finding
20-06-2025
- Business
Nearly half of national public pension plan is invested in U.S. — and only 12% in Canada
As a former top Finance Department official, Susan Peterson played a key role years ago in creating the stable Canada Pension Plan that we see today. But even she was surprised by the numbers. A few weeks ago, the Canada Pension Plan Investment Board (CPPIB) revealed that 12 per cent of the CPP's assets are invested in Canada — its lowest level ever. The largest chunk of its $714-billion fund, 47 per cent, is currently invested in the United States — its highest level ever. Peterson doesn't think she's the only one surprised. If Canadians knew out of the $714 billion such a miniscule amount was invested in Canada, I think they would say, whoa, what's wrong with this picture. The CPPIB is not alone. Experts say the Canada Pension Plan (CPP) is one of several Canadian pension plans that have been investing far more in the U.S. than in Canada in recent years. The CPP, whose investments are managed by the CPPIB, also known as CPP Investments, is a public pension plan that covers millions of Canadian workers across the country with the exception of Quebec, which has its own manager, the Caisse de dépôt et placement . Those who support this high level of U.S. investment, including the CPPIB itself, argue the plan's mandate is to make money. They argue U.S. investments offer more diversity and higher returns — which help ensure the plan will be able to pay out benefits for years to come. Others, however, question why the plan isn't doing more to invest in Canada to create Canadian jobs and infrastructure projects. Enlarge image (new window) Annual reports for 2005 and 2006 did not include geographical distributions outside of Canada. Photo: Canada Pension Plan Investment Board Elizabeth Thompson They are also concerned about the plan's U.S. exposure at a time when President Donald Trump's administration has made the country a riskier place to invest. The Trump administration's big, beautiful tax reform bill also contains a section that risks hitting Canadian pension funds (new window) that have U.S. investments with a new withholding tax that experts predict could cost Canadians and Canadian companies billions if it is adopted. Some pension funds, like the Public Sector Pension Investment Board which has 41 per cent of its assets invested in the U.S., have said in recent days that they are reconsidering their U.S. exposure and are looking for more Canadian investment opportunities. Michel Leduc, head of public affairs and communications for the CPPIB, says it has to invest for the long term, regardless of individual governments or administrations. We're investing money for people who aren't even born yet, he said. That long-term thinking must be the strongest pillar of how we think about our investment strategy. But he says the CPPIB at the same time isn't short-term stupid. We're continuing to think through what could be some of the bigger impacts, he said. Leduc said the U.S. percentage has grown even though the fund has been diversifying away from the U.S. because the existing investments have grown in value. U.S. stocks have gone up, he said. It's just because we make good investments. Time to invest at home again? The CPPIB is also open to Canadian investment opportunities, Leduc said. Prime Minister Mark Carney has announced plans to invest and build in Canada. He has mentioned pension funds as one possible source of money. Finance Minister François-Philippe Champagne said the government also plans to host foreign pension funds interested in investing in Canada. People see Canada as the place to invest, Champagne told CBC News. So, we'll always be talking to them and investors from around the world. There was a time when the CPP primarily invested in Canada. Initially, it was operated as a pay-as-you-go model with investments in Canada, largely in government bonds. However, in the late 1990s the pension plan was facing a crisis — Canada's chief auditor predicted that it would run out of money by 2014 unless something was done. Spearheaded by then finance minister Paul Martin, and aided by officials like Peterson, the federal government and provinces agreed to a package of reforms, including the creation of the CPPIB. While the CPPIB is a Crown corporation, it operates independently from government. For years, a foreign property rule capped the amount pension funds could invest outside Canada. Introduced in 1971, it limited investments by pension funds to 10 per cent of their assets going abroad. That was raised to 20 per cent in the 1990s and then 30 per cent in 2001. In his 2005 budget, Finance Minister Ralph Goodale repealed that rule, saying the move had the potential to increase venture capital investments by pension plans in Canada. Since then, there has been a steady reduction in the value of CPP's investments in Canada and a steady rise in U.S. investments. U.S. stocks rise in value In 2005, 74 per cent of the CPP's assets were invested in Canada. By 2015 it was down to 24.1 per cent. For the last two years it has stood at 12 per cent. At the same time, the plan's assets have grown — from $81.3 billion in 2005 to $714 billion on March 31. Its assets are projected to hit $1 trillion in the next few years, making it one of the largest pension plans in the world. However, as the proportion of the CPP's investment in Canada has dropped and its assets in the U.S. has increased, so too have questions about where the money is going. In March 2024, dozens of top Canadian executives penned an open letter to Finance Minister Chrystia Freeland and provincial finance ministers, concerned with the decline in Canadian investments by pension funds and its impact on the Canadian economy. They called on the ministers to amend the rules governing pension funds to encourage them to invest in Canada. Investments made in Canada do not impact just pension portfolios; they also have a considerable impact on the country's economy; generating jobs, improving incomes and increasing contributions to retirement plans, the executives wrote. In April 2024, the federal government appointed former Bank of Canada governor Stephen Poloz to look at how to catalyze greater domestic investment opportunities for Canadian pension funds. That resulted in proposals in the fall economic statement including measures to make it easier for pension funds to invest in Canadian companies, municipal-owned utility corporations, airports and AI data centres. Daniel Brosseau, co-founder of the Montreal investment firm Letko Brosseau, is concerned by the long-term erosion in Canadian pension fund investment in Canada and its impact on the economy. It's been a long-term decline, and we're basically investing very little in Canada now, he said. Brosseau doubts the measures in the fall economic update will make much of a difference. They don't allow the pension funds to distinguish between a Canadian and a foreign investment in any way, he said. They will have no effect. Instead, Brosseau suggests the government tax the foreign income of pension plans. They could clearly see a difference between a Canadian investment and a foreign investment, and that would change their behaviour, he said. Chris Roberts, director of social and economic policy for the Canadian Labour Congress, says the CPP's role in the Canadian economy is an important debate that is about to heat up — and he wants all Canadians to participate. These are people who pay into the CPP every day and will draw a CPP benefit when they retire, he said. They're often of the view that the CPP Investment Fund should invest more at home and create jobs and economic opportunities here in Canada. Lessons from Quebec Unlike Quebec's Caisse , which has a double mandate to make money and to also invest in Quebec's economic development, the CPP's only mandate is to make money, Roberts said. Sen. Clément Gignac, an economist by profession and a former Quebec cabinet minister, has asked questions in Senate proceedings about where the CPP is investing. He says Quebec has successfully made money for the province's retirement fund while also bolstering economic development. Gignac said Carney's pledge to invest in infrastructure could create opportunities for the CPP and other pension funds to invest in Canada. Do we need to change the mandate officially, or will it come naturally? he said. Gignac would like a Senate committee or a special commission to take a closer look at how Canada's largest pension plans, dubbed the Maple Eight, are investing their assets abroad. If anything happens and geopolitics deteriorate, or we have a hostile foreign country who suddenly seize our assets, just like we have seized assets from Russia … or change the rules of the game on taxation, just like Mr. Trump wants to change them — it would be important if we have a robust risk-management analysis. Trish McAuliffe, president of the National Pensioners Federation, said her members would like to see prudent, ethical investment by the CPPIB as well as increased investment in Canada. We love nothing better than to see great investments here…. investments in infrastructure, hospitals. Things that will benefit our age demographic but also our community at large, she said. McAuliffe said the federation attends stakeholder meetings with the CPPIB, and while at the early stages, she expects the question will be part of the federation's convention in October. We're hopeful … that they're going to make the right decisions, she said. But make no mistake — people are watching. Elizabeth Thompson (new window) · CBC News
CBC
19-06-2025
- Business
- CBC
Nearly half of national public pension plan is invested in U.S. — and only 12% in Canada
Social Sharing As a former top Finance Department official, Susan Peterson played a key role years ago in creating the stable Canada Pension Plan that we see today. But even she was surprised by the numbers. A few weeks ago, the Canada Pension Plan Investment Board (CPPIB) revealed that 12 per cent of the CPP's assets are invested in Canada — its lowest level ever. The largest chunk of its $714-billion fund, 47 per cent, is currently invested in the United States — its highest level ever. Peterson doesn't think she's the only one surprised. "If Canadians knew out of the $714 billion such a miniscule amount was invested in Canada, I think they would say, whoa, what's wrong with this picture." The CPPIB is not alone. Experts say the Canada Pension Plan (CPP) is one of several Canadian pension plans that have been investing far more in the U.S. than in Canada in recent years. The CPP, whose investments are managed by the CPPIB, also known as CPP Investments, is a public pension plan that covers millions of Canadian workers across the country with the exception of Quebec, which has its own manager, the Caisse de dépôt et placement. Those who support this high level of U.S. investment, including the CPPIB itself, argue the plan's mandate is to make money. They argue U.S. investments offer more diversity and higher returns — which help ensure the plan will be able to pay out benefits for years to come. Others, however, question why the plan isn't doing more to invest in Canada to create Canadian jobs and infrastructure projects. They are also concerned about the plan's U.S. exposure at a time when President Donald Trump's administration has made the country a riskier place to invest. The Trump administration's "big, beautiful" tax reform bill also contains a section that risks hitting Canadian pension funds that have U.S. investments with a new withholding tax that experts predict could cost Canadians and Canadian companies billions if it is adopted. Some pension funds, like the Public Sector Pension Investment Board which has 41 per cent of its assets invested in the U.S., have said in recent days that they are reconsidering their U.S. exposure and are looking for more Canadian investment opportunities. Michel Leduc, head of public affairs and communications for the CPPIB, says it has to invest for the long term, regardless of individual governments or administrations. "We're investing money for people who aren't even born yet," he said. "That long-term thinking must be the strongest pillar of how we think about our investment strategy." But he says the CPPIB at the same time isn't "short-term stupid." "We're continuing to think through what could be some of the bigger impacts," he said. Leduc said the U.S. percentage has grown even though the fund has been diversifying away from the U.S. because the existing investments have grown in value. "U.S. stocks have gone up," he said. "It's just because we make good investments." Time to invest at home again? The CPPIB is also open to Canadian investment opportunities, Leduc said. Prime Minister Mark Carney has announced plans to invest and build in Canada. He has mentioned pension funds as one possible source of money. Finance Minister François-Philippe Champagne said the government plans to host pension funds interested in investing at home. "People see Canada as the place to invest," Champagne told CBC News. "So, we'll always be talking to them and investors from around the world." There was a time when the CPP primarily invested in Canada. Initially, it was operated as a pay-as-you-go model with investments in Canada, largely in government bonds. However, in the late 1990s the pension plan was facing a crisis — Canada's chief auditor predicted that it would run out of money by 2014 unless something was done. Spearheaded by then finance minister Paul Martin, and aided by officials like Peterson, the federal government and provinces agreed to a package of reforms, including the creation of the CPPIB. While the CPPIB is a Crown corporation, it operates independently from government. For years, a foreign property rule capped the amount pension funds could invest outside Canada. Introduced in 1971, it limited investments by pension funds to 10 per cent of their assets going abroad. That was raised to 20 per cent in the 1990s and then 30 per cent in 2001. In his 2005 budget, Finance Minister Ralph Goodale repealed that rule, saying the move had the potential to increase venture capital investments by pension plans in Canada. Since then, there has been a steady reduction in the value of CPP's investments in Canada and a steady rise in U.S. investments. U.S. stocks rise in value In 2005, 74 per cent of the CPP's assets were invested in Canada. By 2015 it was down to 24.1 per cent. For the last two years it has stood at 12 per cent. At the same time, the plan's assets have grown — from $81.3 billion in 2005 to $714 billion on March 31. Its assets are projected to hit $1 trillion in the next few years, making it one of the largest pension plans in the world. However, as the proportion of the CPP's investment in Canada has dropped and its assets in the U.S. has increased, so too have questions about where the money is going. In March 2024, dozens of top Canadian executives penned an open letter to Finance Minister Chrystia Freeland and provincial finance ministers, concerned with "the decline in Canadian investments by pension funds and its impact on the Canadian economy." They called on the ministers "to amend the rules governing pension funds to encourage them to invest in Canada." "Investments made in Canada do not impact just pension portfolios; they also have a considerable impact on the country's economy; generating jobs, improving incomes and increasing contributions to retirement plans," the executives wrote. In April 2024, the federal government appointed former Bank of Canada governor Stephen Poloz to look at how to "catalyze greater domestic investment opportunities for Canadian pension funds." That resulted in proposals in the fall economic statement including measures to make it easier for pension funds to invest in Canadian companies, municipal-owned utility corporations, airports and AI data centres. Daniel Brosseau, co-founder of the Montreal investment firm Letko Brosseau, is concerned by the "long-term erosion" in Canadian pension fund investment in Canada and its impact on the economy. "It's been a long-term decline, and we're basically investing very little in Canada now," he said. Brosseau doubts the measures in the fall economic update will make much of a difference. "They don't allow the pension funds to distinguish between a Canadian and a foreign investment in any way," he said. "They will have no effect." Instead, Brosseau suggests the government tax the foreign income of pension plans. "They could clearly see a difference between a Canadian investment and a foreign investment, and that would change their behaviour," he said. Chris Roberts, director of social and economic policy for the Canadian Labour Congress, says the CPP's role in the Canadian economy is an important debate that is about to heat up — and he wants all Canadians to participate. "These are people who pay into the CPP every day and will draw a CPP benefit when they retire," he said. "They're often of the view that the CPP Investment Fund should invest more at home and create jobs and economic opportunities here in Canada." Lessons from Quebec Unlike Quebec's Caisse, which has a double mandate to make money and to also invest in Quebec's economic development, the CPP's only mandate is to make money, Roberts said. Sen. Clément Gignac, an economist by profession and a former Quebec cabinet minister, has asked questions in Senate proceedings about where the CPP is investing. He says Quebec has successfully made money for the province's retirement fund while also bolstering economic development. Gignac said Carney's pledge to invest in infrastructure could create opportunities for the CPP and other pension funds to invest in Canada. "Do we need to change the mandate officially, or will it come naturally?" he said. Gignac would like a Senate committee or a special commission to take a closer look at how Canada's largest pension plans, dubbed the Maple Eight, are investing their assets abroad. "If anything happens and geopolitics deteriorate, or we have a hostile foreign country who suddenly seize our assets, just like we have seized assets from Russia … or change the rules of the game on taxation, just like Mr. Trump wants to change them — it would be important if we have a robust risk-management analysis." Trish McAuliffe, president of the National Pensioners Federation, said her members would like to see prudent, ethical investment by the CPPIB as well as increased investment in Canada. "We love nothing better than to see great investments here…. investments in infrastructure, hospitals. Things that will benefit our age demographic but also our community at large," she said. McAuliffe said the federation attends stakeholder meetings with the CPPIB, and while at the early stages, she expects the question will be part of the federation's convention in October. "We're hopeful … that they're going to make the right decisions," she said. "But make no mistake — people are watching."
CTV News
17-06-2025
- Business
- CTV News
Data analytics startup Coralogix doubles valuation to over US$1 billion in latest funding round
In this stock photo, a person is seen typing on a computer keyboard. (Pexels) Data analytics platform Coralogix nearly doubled its valuation to over US$1 billion in its latest funding round, co-founder and CEO Ariel Assaraf told Reuters in an interview, as artificial intelligence-driven enterprise offerings continue to pique investor delight. Coralogix raised US$115 million in a round led by California-based venture growth firm NewView Capital, the startup said on Tuesday. Canada Pension Plan Investment Board (CPPIB) and venture firm NextEquity also participated in the round. The fundraise comes three years after Coralogix's previous external funding in 2022, where it raised US$142 million. Valuations have faced downward pressure since then, as investors continue to sit on dry powder amid elevated interest rates and geopolitical tensions. Enterprise software-as-a-service startups, however, have endured a wider slowdown in venture capital funding, with an AI gold-rush pushing SaaS financing to record US$58 billion in the first quarter, according to PitchBook. Coralogix's revenue increased seven times since 2022, Assaraf told Reuters. The company, however, is yet to be profitable, with nearly 75 per cent of its revenue in 2024 going towards research and development, according to Assaraf. 'Successful companies in our space always invest a large portion of their revenue in R&D and were very late to become profitable,' Assaraf added, noting a similar pathway across peers Datadog and Splunk. Startups are integrating AI-driven agents across IT development and operations as enterprises increasingly ask for all-in-one platforms to oversee their entire cloud infrastructure and processes. Coralogix expanded into AI observability with the acquisition of Aporia in December 2024. The company is aggressively looking to expand its AI talent pool, Assaraf said. 'If there's a strategic acquisition of a company with a specific, very talented pool of people around AI, we will make those acquisitions, even if they're not small,' he told Reuters. On Tuesday, Coralogix also unveiled its new AI agent 'olly,' aiming to simplify data monitoring via a conversational platform. Industry leaders have hailed AI-based agents as a transformative use case of the technology. --- Reporting by Arasu Kannagi Basil and Ateev Bhandari in Bengaluru; Editing by Alan Barona.
Reuters
17-06-2025
- Business
- Reuters
Data analytics startup Coralogix doubles valuation to over $1 billion in latest funding round
June 17 (Reuters) - Data analytics platform Coralogix nearly doubled its valuation to over $1 billion in its latest funding round, co-founder and CEO Ariel Assaraf told Reuters in an interview, as artificial intelligence-driven enterprise offerings continue to pique investor delight. Coralogix raised $115 million in a round led by California-based venture growth firm NewView Capital, the startup said on Tuesday. Canada Pension Plan Investment Board (CPPIB) and venture firm NextEquity also participated in the round. The fundraise comes three years after Coralogix's previous external funding in 2022, where it raised $142 million. Valuations have faced downward pressure since then, as investors continue to sit on dry powder amid elevated interest rates and geopolitical tensions. Enterprise software-as-a-service startups, however, have endured a wider slowdown in venture capital funding, with an AI gold-rush pushing SaaS financing to record $58 billion in the first quarter, according to PitchBook. Coralogix's revenue increased seven times since 2022, Assaraf told Reuters. The company, however, is yet to be profitable, with nearly 75% of its revenue in 2024 going towards research and development, according to Assaraf. "Successful companies in our space always invest a large portion of their revenue in R&D and were very late to become profitable," Assaraf added, noting a similar pathway across peers Datadog (DDOG.O), opens new tab and Splunk. Startups are integrating AI-driven agents across IT development and operations as enterprises increasingly ask for all-in-one platforms to oversee their entire cloud infrastructure and processes. Coralogix expanded into AI observability with the acquisition of Aporia in December 2024. The company is aggressively looking to expand its AI talent pool, Assaraf said. "If there's a strategic acquisition of a company with a specific, very talented pool of people around AI, we will make those acquisitions, even if they're not small," he told Reuters. On Tuesday, Coralogix also unveiled its new AI agent "olly," aiming to simplify data monitoring via a conversational platform. Industry leaders have hailed AI-based agents as a transformative use case of the technology.
