Jeannie Cahalane
In December 2025, the San Francisco-based software operations startup Resolve AI reached a $1 billion valuation following its Series A funding round. The investment was led by Lightspeed Venture Partners, following a $35 million Seed round led by Greylock in late 2024.
The company is led by CEO Spiros Xanthos (former Splunk GM and SVP of Observability) and CTO Mayank Agarwal (Splunk’s former chief architect for observability). Resolve AI is tackling the “SRE crisis”—the growing difficulty for enterprises to find and retain enough skilled Site Reliability Engineers to maintain increasingly complex cloud systems.
While traditional observability tools only monitor and alert, Resolve AI’s platform acts as an “Autonomous SRE.” Its AI agents do not just identify problems; they autonomously diagnose and resolve production incidents in real-time. By leveraging deep system-level reasoning, the platform can troubleshoot complex outages—from database bottlenecks to code-level errors—neutralizing threats before they impact users and reducing “Mean Time to Resolve” (MTTR) from hours to minutes.
The new capital will be used to aggressively scale its engineering team and expand its autonomous agent capabilities into cloud cost optimization and predictive incident prevention.
Market Signal
- The Splunk Pedigree: The founders are not just “AI tourists.” As the architects behind Splunk’s observability empire, Xanthos and Agarwal possess the deep domain trust required to sell AI that can “write back” and modify production systems—the ultimate hurdle in enterprise IT.
- From Alerting to Autonomy: This $1B valuation validates a shift in the $18B observability market. Investors are no longer betting on “better dashboards” (Datadog/New Relic) but on “Autonomous Agents” that replace human toil. Resolve AI represents the shift from Software that Monitors to Software that Acts.
- Novel Multi-Tranche Structure: Market sources indicate the round utilized a “headline-first” multi-tranched structure. This allows sought-after AI startups to maintain unicorn status while providing investors with downside protection, signaling that even at peak hype, VCs are prioritizing long-term structural alignment.
Key Details
- Company: Resolve AI
- Funding: Series A
- Valuation: $1 Billion (Headline)
- Lead Investor: Lightspeed Venture Partners
- Founders: Spiros Xanthos (CEO), Mayank Agarwal (CTO)
- Use Case: Autonomous site reliability engineering and real-time incident resolution
