Resolve AI, a startup developing an autonomous site reliability engineer (SRE) tool that automatically manages software systems, has secured a Series A funding round led by Lightspeed Venture Partners, according to sources familiar with the matter.
The headline valuation for this round is set at $1 billion. However, actual blended valuation is lower due to a multi-tranched structure. In this arrangement, investors bought some equity at the $1 billion mark but acquired the rest—likely a larger portion of the round—at a lower price. This innovative investment strategy has gained traction among top AI startups, according to industry insiders.
The startup’s annual recurring revenue (ARR) stands at around $4 million, although the specific amount of funding raised isn’t clear.
Resolve AI and Lightspeed did not respond to requests for comments.
Founded less than two years ago, Resolve AI is led by former Splunk executive Spiros Xanthos and Mayank Agarwal, who was Splunk’s chief architect for observability. Their collaboration goes back 20 years to their time at the University of Illinois Urbana-Champaign. This isn’t their first venture together; they previously co-founded Omnition, which was acquired by Splunk in 2019.
While traditional human SREs manually troubleshoot and fix system failures, Resolve AI automates this process by 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 environments, organizations often struggle to retain enough skilled SREs to keep everything running smoothly. By automating these critical tasks, companies can reduce downtime, lower operational costs, and allow engineering teams to focus on developing new features rather than continually dealing with production issues.
Last October, Resolve AI raised a $35 million seed round led by Greylock, with contributions from World Labs founder Fei-Fei Li and Google DeepMind scientist Jeff Dean.
Resolve AI faces competition from Traversal, another AI SRE startup that raised $48 million in a Series A, led by Kleiner Perkins with participation from Sequoia.
