Resolve AI, a Silicon Valley startup developing autonomous tools to manage and fix software outages, has reached a $1 billion valuation after closing a Series A funding round led by Lightspeed Venture Partners. The company’s innovative approach to automating site reliability engineering, traditionally a highly manual and specialized discipline, is drawing strong investor interest as enterprises push to keep complex systems running smoothly.
Founded less than two years ago by former Splunk executives Spiros Xanthos and Mayank Agarwal, Resolve AI is building what it calls an autonomous site reliability engineer (SRE). This AI-driven system continuously monitors live software systems, detects issues, diagnoses root causes, and applies automated fixes, all without requiring human intervention. This capability aims to dramatically reduce downtime for critical applications and free engineering teams from repetitive troubleshooting tasks.
The reported $1 billion figure reflects the headline valuation assigned to Resolve AI’s Series A round. However, the actual blended valuation, calculated across multiple investment tranches, is understood to be lower because part of the funding was purchased at the benchmark $1 billion price, while the remainder was transacted at lower valuations. This multi-tranching structure has become more common among fast-growing AI startups as a way to balance investor risk and startup momentum.
Despite its early stage, the company has already demonstrated meaningful traction. Sources familiar with the business say Resolve AI generates roughly $4 million in annual recurring revenue (ARR), a solid beginning for enterprise infrastructure software still in expansion mode. The startup has also raised prior seed funding from prominent industry investors, signaling confidence in both the team and the technology.
Investors see Resolve AI’s technology as a direct response to a critical pain point in modern software operations. As distributed cloud environments grow more complex, outages become harder to prevent and more costly when they occur. Skilled SRE professionals are in short supply and high demand, making automation tools increasingly attractive to large organizations.
Resolve AI’s funding milestone underscores a broader market trend: enterprise automation and AI infrastructure tools are rapidly gaining investor priority alongside consumer-facing generative AI. If the startup can continue to scale its product and deliver consistent results in real-world environments, the $1 billion valuation may prove justified.
