groundcover, the cloud infrastructure monitoring company, is acquiring Israeli startup Wand, Calcalist reported on September 24, 2026. Wand builds software that automatically optimises how computing resources are allocated on Kubernetes, the system many companies use to run their cloud applications.
The companies did not disclose the terms. Calcalist reported that the price is several tens of millions of dollars. Wand's founding team and its 10 employees will join groundcover.
It is groundcover's first acquisition. The deal comes about two months after the company announced a $100 million funding round, which took its total capital raised to $160 million.
What Wand built
Shon Lev-Ran and Shir Monether founded Wand in 2023. The company raised about $4 million in a seed round led by Angular Ventures.
Its software watches how workloads behave and decides how much computing power to give them at three levels at once. Vertical scaling changes the resources given to an individual workload, horizontal scaling changes how many copies of a workload run, and cluster scaling changes the underlying machines. Rather than producing recommendations for engineers to act on, Wand's system makes those changes itself on live Kubernetes infrastructure.
The aim is to keep services fast and available without paying for more capacity than they need. If an AI-based service suddenly needs more computing power, the system can add resources, and it can scale them back when demand falls. Wand's software runs inside the customer's own environment, next to the workloads and data it uses to make decisions.
“Right-sizing assumes we know the future. Spoiler: we don't. Infrastructure changes continuously. Joining groundcover lets us combine Wand's ability to act on live infrastructure with a much deeper understanding of what is happening across production.”
Why groundcover is buying
groundcover was founded in 2021 by chief executive Shahar Azulay and chief technology officer Yechezkel Rabinovich and serves more than 250 customers. Its platform collects detailed data on what is happening across cloud software and infrastructure, using the eBPF and OpenTelemetry technologies, so that engineering teams can find faults, understand slowdowns and see which changes came before a problem.
The company sells a bring-your-own-cloud model in which the monitoring data stays inside customers' own cloud accounts. Wand's software fits that design because it also runs in the customer's environment.
The acquisition moves groundcover from watching and explaining systems to acting on them. The combined platform is meant to use production data to make decisions and then carry out infrastructure changes automatically. Azulay argued that, as AI agents take on more of the work of building and running software, production data becomes context those agents use, but that infrastructure can only become autonomous if systems can also act safely on what they know.
The founders' view
Lev-Ran, Wand's chief executive, said the deal would combine Wand's ability to act on live infrastructure with groundcover's broader picture of what is happening in production. He noted that right-sizing infrastructure assumes knowledge of the future, which nobody has, because infrastructure changes all the time.
Azulay said observability had grown well beyond a tool engineers open to find out what went wrong. In his view, Wand had spent years building the ability to act safely on that knowledge for Kubernetes, which is the piece groundcover lacked.
For Wand's investors, the sale comes roughly three years after the company was founded and after a single reported funding round of about $4 million. Neither company said whether Wand's product will continue to be sold on its own or only as part of groundcover's platform.
A busy year for Israeli infrastructure startups
The deal is one of several purchases of young Israeli cloud and AI infrastructure companies in 2026. Calcalist's running list of Israeli startup acquisitions for the year includes DoiT's purchase of AI cost-tracking startup Attribute in August and Upwind's acquisition of nine-month-old Aegis a day before the Wand deal was reported. In October, Nebius bought Inferize, a startup working on idle GPU capacity.
Cost and efficiency of cloud computing have become pressing for companies running AI workloads, which can swing sharply in how much compute they need. Tools that adjust capacity automatically are one response, and groundcover is betting that pairing them with monitoring will make its platform harder to replace.
