Resolve AI Secures Billion Valuation in Series A Led by Lightspeed

Resolve AI Secures $1 Billion Valuation in Series A Led by Lightspeed

Key Points

  • Resolve AI’s Series A led by Lightspeed carries a headline $1 billion valuation.
  • Founders Spiros Xanthos and Mayank Agarwal are former Splunk executives.
  • The startup automates detection, diagnosis, and remediation of production issues.
  • Annual recurring revenue is reported at about $4 million.
  • Funding uses a multi‑tranche structure, lowering the blended valuation.
  • Earlier seed round of $35 million included Greylock, Fei‑Fei Li, and Jeff Dean.
  • Competes with Traversal, another AI‑driven SRE startup.
  • Omnition, the founders’ prior venture, was acquired by Splunk in 2019.

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

Funding and Valuation

Resolve AI closed a Series A financing round led by Lightspeed Venture Partners. The headline valuation for the round is $1 billion, though the blended valuation is lower because investors purchased part of the equity at that headline price and the remainder at a lower price within a multi‑tranche structure. This approach has recently become common for sought‑after AI startups. The exact size of the Series A round was not disclosed. Earlier, the company raised a $35 million seed round led by Greylock, with participation from World Labs founder Fei‑Fei Li and Google DeepMind scientist Jeff Dean.

Founders and Background

Resolve AI was founded less than two years ago by former Splunk executives Spiros Xanthos, a former Splunk executive, and Mayank Agarwal, who served as Splunk’s chief architect for observability. Their partnership traces back 20 years to graduate studies at the University of Illinois Urbana‑Champaign. Prior to Resolve AI, they co‑founded Omnition, a startup acquired by Splunk in 2019.

Technology and Market Need

The company’s flagship product is an autonomous site reliability engineer (SRE) that automatically maintains software systems. Unlike traditional SREs who manually troubleshoot and resolve system failures, Resolve AI’s platform autonomously identifies, diagnoses, and resolves production issues in real time. As software systems become increasingly complex and distributed across cloud infrastructure, many organizations struggle to find and retain enough skilled SREs. Resolve AI’s automation promises to reduce downtime, lower operational costs, and free engineering teams to focus on building new features rather than constantly firefighting production problems. The startup reports annual recurring revenue of approximately $4 million.

Competitive Landscape

Resolve AI competes with other AI‑driven SRE startups, notably Traversal, which recently raised a $48 million Series A led by Kleiner Perkins with participation from Sequoia. Both companies aim to address the same talent gap and operational challenges in modern cloud environments.

Industry Context

The emergence of autonomous SRE platforms reflects a broader industry trend toward automating operational tasks that traditionally required highly specialized human expertise. Investors are increasingly applying multi‑tranche financing structures to capture upside potential while managing valuation risk in rapidly scaling AI ventures.

Source: techcrunch.com