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

Resolve AI, an innovative startup focused on creating an autonomous site reliability engineer (SRE), has successfully secured a Series A funding round led by Lightspeed Venture Partners, bringing its valuation to a remarkable $1 billion, according to sources close to the deal. However, the actual blended valuation is reportedly lower due to the investment structure, where some equity was acquired at the $1 billion valuation and a larger portion at a reduced price. This unique funding strategy has gained traction among top AI startups, as investors seek to manage risk while backing promising technologies. Resolve AI, which has been operational for less than two years, is spearheaded by former Splunk executives Spiros Xanthos and Mayank Agarwal. Their professional relationship spans two decades, dating back to their studies at the University of Illinois Urbana-Champaign, and they have previously collaborated on Omnition, a company that Splunk acquired in 2019. With an annual recurring revenue (ARR) of around $4 million, Resolve AI addresses a pressing issue for many organizations. As software systems evolve into increasingly complex and distributed networks, the demand for skilled SREs has surged, yet finding and retaining these professionals remains a challenge. Resolve AI's technology automates the identification, diagnosis, and resolution of production issues in real time, significantly reducing downtime and operational expenses. This shift allows engineering teams to concentrate on developing new features rather than continually addressing system failures. In October, the startup raised $35 million in a seed funding round led by Greylock, with notable contributions from prominent figures such as Fei-Fei Li and Google DeepMind scientist Jeff Dean. Resolve AI now faces competition from other AI SRE startups, including Traversal, which recently secured $48 million in a Series A round led by Kleiner Perkins and Sequoia.