Oodle.ai – $10 per million agent traces

Hi HN, we're Kiran and Vijay!Over the past two years, we have built a columnar storage engine for observability: logs, metrics, and traces. Today, it's exciting for us to show what we've built on top of that foundation: LLM Agent Observability.Given how non-deterministic agents are, storing all traces without sampling was critical for us. But these traces tend to be in the MBs, sometimes GBs - we needed to store them inexpensively. We also needed the queries and analyses to be fast. To meet both these goals, we store them in S3 in our own parquet-like file format, and query them using AWS Lambda.Since we process each span of every trace, instead of running LLM-based evals on each, we first analyze them using deterministic techniques. We detect tool failures, retries, loops, abnormal token usage, latency regressions, schema violations, sentiment, and other production signals. We've written more about the approach here: https://blog.oodle.ai/you-cant-sample-your-way-to-reliable-a...The combination of our own engine, no sampling, and deterministic processing before LLM-for-evals allows us to price at $10 per million traces, provide sub-second p99 query latency, and have healthy margins. Before building this, we used Langfuse for our own agent observability, which was 6x more expensive.Still super early, and rough around some edges, we would love your questions and feedback!

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FL score

72

out of 100

Verdict

VALIDATE

high confidence

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A specialized observability platform for LLM agents that costs 6x less than competitors by storing full traces without sampling and using deterministic analysis before LLM evaluation.

The pain

LLM agents are unpredictable and fail in production in ways that are hard to debug. Teams need to see every execution trace to understand what went wrong, but existing observability tools (Langfuse, DataDog) charge prohibitively high prices for storing and querying this volume of data. At scale, the cost becomes a blocker to proper monitoring.

The gap

Current solutions either sample traces (missing failures) or charge $60+ per million traces. No one has built a system that stores full traces cheaply while maintaining fast query performance. The gap exists because it requires custom infrastructure (columnar storage, S3 optimization, Lambda querying) that generic observability platforms don't need.

Build angle

The founders have already built the hard technical foundation (columnar storage engine) and validated the unit economics work. They've proven 6x cost advantage over Langfuse. The next phase is acquiring agent teams who are hitting cost walls with existing tools and converting them. The deterministic preprocessing (detecting loops, retries, token anomalies) before LLM evals is a defensible moat that improves both cost and speed.

Strengths

  • Proven 6x cost advantage with working product and real usage data
  • Technical moat: custom storage engine and deterministic preprocessing are hard to replicate
  • Clear ICP: teams running production agents at scale who are price-sensitive
  • Sub-second query latency removes a major pain point vs. sampling-based competitors
  • Founders have deep infrastructure experience (built columnar storage from scratch)
  • Timing: agent adoption is accelerating, making observability increasingly critical

Risks

  • Market size uncertainty: how many teams actually run production agents at scale today? Langfuse's pricing suggests the market is smaller than general observability
  • Competitive response: Langfuse or DataDog could build similar cost structure if market validates
  • Sales complexity: selling to engineering teams requires proving ROI on observability spend, which is harder than selling to ops teams
  • Product roughness acknowledged by founders suggests GTM may be premature; early adopters will face friction
  • Dependency on AWS Lambda pricing and S3 costs, changes to AWS pricing directly impact margins
  • Deterministic preprocessing may miss novel failure modes that only LLM evaluation catches

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