Resolve AI, a startup developing an autonomous site reliability engineer tool that automatically maintains software systems, has raised a Series A funding round led by Lightspeed Venture Partners. This information comes from three people familiar with the deal. The headline valuation for this new round is one billion dollars.
However, the company’s actual blended valuation was lower due to a multi-tranched investment structure. In this setup, investors purchased some equity at the one billion dollar valuation but acquired the remainder, likely a larger percentage of the round, at a lower price. This novel investment approach has recently become popular for the most sought-after AI startups, according to investors.
The startup’s annual recurring revenue is approximately four million dollars, according to two of the people. The size of the funding round could not be learned. Resolve AI and Lightspeed did not respond to requests for comment.
Founded less than two years ago, the startup is led by former Splunk executive Spiros Xanthos and Mayank Agarwal, Splunk’s former chief architect for observability. Their partnership dates back twenty years to their graduate studies at the University of Illinois Urbana-Champaign. This is not their first collaboration; they previously co-founded Omnition, a startup that was acquired by Splunk in 2019.
While human site reliability engineers are traditionally responsible for manually troubleshooting and resolving system failures, Resolve AI automates this process by autonomously identifying, diagnosing, and resolving production issues in real time. This automation addresses a growing challenge for companies. As software systems become more complex and distributed across cloud infrastructure, organizations often struggle to find and retain enough skilled site reliability engineers to keep systems running smoothly. Automating these tasks can reduce downtime, lower operational costs, and free up engineering teams to focus on building new features rather than constantly addressing production issues.
Last October, Resolve AI raised a thirty-five million dollar seed round led by Greylock with participation from World Labs founder Fei-Fei Li and Google DeepMind scientist Jeff Dean. Resolve AI competes with Traversal, an AI site reliability engineer startup that raised a forty-eight million dollar Series A led by Kleiner Perkins, with participation from Sequoia.