Ex-Splunk execs Resolve AI startup raises $1B Series A

Resolve AI, a startup developing Autonomous Site Reliability Engineer (SRE), a tool that automatically maintains software systems, has raised a Series A led by Lightspeed Venture Partners, according to three people familiar with the deal.

The sources said that the main valuation of the new round is $1 billion. However, the company’s actual mixed rating was lower due to its multi-tranche structure. In this setup, investors bought some shares worth $1 billion, but got the rest — likely a larger percentage of the round — at a lower price. Investors say this new investment approach has recently become popular for the hottest AI startups.

The startup’s annual recurring revenue (ARR) is about $4 million, two of the people said. The size of the financing round cannot 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 CEO Spiros Xanthos and Mayank Agarwal, Splunk’s former lead engineer for observability. The duo’s partnership goes back 20 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 Splunk acquired 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 addresses a growing challenge for businesses. As software systems become more complex and distributed across cloud infrastructure, organizations often struggle to find and retain enough skilled SREs to keep systems running smoothly. Automating these tasks can reduce downtime, lower operating costs, and free up engineering teams to focus on creating new features rather than constantly trying to solve production problems.

Last October, Resolve AI raised a $35 million seed funding 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 SRE AI startup that has raised $48 million in Series A funding led by Kleiner Perkins, with participation from Sequoia.