Resolve AI, a company building an autonomous site reliability engineer designed to automatically maintain software systems, has secured a Series A funding round led by Lightspeed Venture Partners. According to individuals with knowledge of the transaction, the headline valuation for this new investment is $1 billion.

However, the company's actual blended valuation was lower due to a multi-tranche investment structure. In this arrangement, investors bought a portion of equity at the $1 billion valuation but acquired the remainder—likely representing a larger share of the round—at a reduced price. This innovative funding approach has recently gained popularity among the most in-demand AI startups.

Sources indicate the startup's annual recurring revenue is approximately $4 million. The exact size of the funding round remains undisclosed. Resolve AI and Lightspeed did not respond to requests for comment.

The company was founded less than two years ago and is led by former Splunk executive Spiros Xanthos and Mayank Agarwal, Splunk's former chief architect for observability. The pair's professional partnership spans two decades, originating from their graduate studies at the University of Illinois Urbana-Champaign.

This collaboration builds on their previous venture; they previously co-founded Omnition, a startup acquired by Splunk in 2019.

While traditional human site reliability engineers manually troubleshoot and resolve system failures, Resolve AI automates this entire process. The platform autonomously identifies, diagnoses, and fixes production issues in real time.

This automation tackles a significant industry challenge. As software systems grow increasingly complex and distributed across cloud infrastructure, organizations frequently struggle to recruit and retain enough skilled SREs to maintain smooth operations. Automating these critical tasks can reduce system downtime, lower operational costs, and allow engineering teams to concentrate on developing new features instead of constantly addressing production problems.

Last October, Resolve AI closed a $35 million seed round led by Greylock, with participation from World Labs founder Fei-Fei Li and Google DeepMind scientist Jeff Dean.

In the competitive landscape, Resolve AI faces Traversal, another AI SRE startup that recently raised a $48 million Series A round led by Kleiner Perkins with participation from Sequoia.