Resolve AI, a startup building an autonomous site reliability engineer (SRE) that automatically detects, diagnoses, and resolves software system issues in real time, has reached a $1 billion headline valuation following a Series A round led by Lightspeed Venture Partners, according to three people familiar with the deal. While the company’s headline valuation is $1 billion, the actual blended valuation was lower due to a multi-tranched investment structure. In this model, some investors acquired equity at the $1 billion valuation, while a larger portion of the round was purchased at a reduced price, a strategy increasingly common among top-tier AI startups. The company’s annual recurring revenue (ARR) is estimated at around $4 million, according to two sources. The total size of the Series A round was not disclosed, and neither Resolve AI nor Lightspeed responded to requests for comment. Founded less than two years ago, Resolve AI is led by Spiros Xanthos and Mayank Agarwal, both former executives at Splunk. Xanthos served as a senior leader in the company’s observability division, while Agarwal was Splunk’s chief architect for observability. Their professional partnership began two decades ago during graduate studies at the University of Illinois Urbana-Champaign. The two previously co-founded Omnition, a monitoring startup that was acquired by Splunk in 2019. Traditional SREs are responsible for manually identifying and fixing system outages, a process that can be time-consuming and resource-intensive, especially as software systems grow more complex and distributed across cloud environments. Resolve AI’s platform automates this work, enabling real-time issue resolution, reducing system downtime, and allowing engineering teams to focus on innovation rather than firefighting. The company’s technology is designed to address a growing industry challenge: a shortage of skilled SREs. As companies scale their digital infrastructure, the demand for reliable, automated operations has surged. Resolve AI’s solution offers a way to improve system reliability while cutting operational costs. In October of the previous year, Resolve AI raised a $35 million seed round led by Greylock, with participation from Fei-Fei Li, founder of World Labs, and Jeff Dean, a renowned AI scientist from Google DeepMind. The startup is now competing with Traversal, another AI-powered SRE company that recently closed a $48 million Series A led by Kleiner Perkins, with backing from Sequoia. As the market for AI-driven operations tools expands, Resolve AI’s rapid growth and high-profile leadership team position it as a key player in the next generation of software reliability.