Resolve AI, the startup from former Splunk executives, hits $1 billion valuation with Series A round

Resolve AI, a startup developing an autonomous site reliability engineer (SRE), a tool that automatically maintains software systems, has raised a Series A round led by Lightspeed Venture Partners, according to three people familiar with the matter.

The overall valuation of the new round is $1 billion, sources said. However, the company’s actual overall valuation was lower due to its multi-tranche structure. In this setup, investors bought shares at a $1 billion valuation, but acquired the rest – likely a larger percentage of the round – at a lower price. This new investment approach has recently become popular for the most sought-after AI startups, investors say.

The startup’s annual recurring revenue (ARR) is about $4 million, two of the people said. The scale of the financing round could not be known.

Resolve AI and Lightspeed did not respond to our request for comment.

Founded less than two years ago, the startup is led by former Splunk executive Spiros Xanthos and Mayank Agarwal, former Splunk chief architect for observability. The duo’s partnership dates back 20 years to their graduate studies at the University of Illinois at Urbana-Champaign. This isn’t their first collaboration; they previously co-founded Omnition, a startup acquired by Splunk in 2019.

While human SREs 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.

Automation responds to a growing challenge for businesses. As software systems become more complex and distributed across cloud infrastructure, companies often struggle to find and retain enough qualified SREs to keep the systems running smoothly. Automating these tasks can reduce downtime, lower operational costs, and allow engineering teams to focus on building new features rather than constantly trying to resolve production issues.

Last October, Resolve AI raised a $35 Million Seed round led by Greylock with the participation of World Labs founder Fei-Fei Li and Google DeepMind scientist Jeff Dean.

Resolve AI competes with Traversal, an AI SRE startup that has raised a $48 million Series A led by Kleiner Perkins, with participation from Sequoia.