Ex-Splunk execs’ startup Resolve AI hits $1 billion valuation with Series A

Resolve AI, a startup that makes reliable independent engineering (SRE), a tool that automates software maintenance, has raised a Series A led by Lightspeed Venture Partners, according to three people familiar with the deal.

The headline price of the new competition is $1 billion, sources said. However, the actual valuation of the company was lower because of the structure. In this setup, investors bought some of the stock at a cost of $1 billion but got the rest – perhaps a large part of the round – at a lower price. This new way of financing soon to be famous of the most sought-after AI startups, investors say.

The annualized revenue (ARR) is about $4 million, two people said. The size of the investment is not 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 chief architect for visibility. The couple’s relationship dates back 20 years to their graduate studies at the University of Illinois Urbana-Champaign. This is not their first collaboration; he previously founded Omnition, a startup that was acquired by Splunk in 2019.

While human SREs have always been responsible for manual troubleshooting and resolving system failures, Resolve AI uses this to identify, identify, and resolve production issues in real time.

These systems address the increasingly complex challenges of the industry. As software systems become more complex and distributed across the cloud, outfits often struggle to find and retain enough skilled SREs to keep systems running smoothly. Doing this automatically can reduce downtime, lower operational costs, and free up engineering teams to focus on innovation instead of trying to solve manufacturing problems.

Last October, Resolve AI upgraded a 35 million seeds 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 SRE startup that launched $48 million Series A led by Kleiner Perkins, with participation from Sequoia.