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Resolve AI, a startup automating the work of system reliability engineering (SRE), aka troubleshooting system failures, has announced a $125 million Series A at a $1 billion valuation.

The round was led by Lightspeed Venture Partners, with participation of existing investors including Greylock Partners, Unusual Ventures, Artisanal Ventures, and A*.

The announcement confirms TechCrunch’s December report that the startup was raising at a billion-dollar valuation led by Lightspeed.

Sources told TechCrunch at the time that the round may have consisted of multiple tranches, at different prices, which could have put the company’s actual blended valuation below $1 billion. A spokesperson for Resolve denied that there were multiple tranches in the round, saying that 100% of the equity was purchased at a valuation of $1 billion.

As we previously reported, this kind of structure allows certain investors, often the lead, to purchase a significant portion of equity at a lower price.

Resolve was co-founded in early 2024 by two former Splunk executives, Spiros Xanthos and Mayank Agarwal. Their previous startup, Omnition, was acquired by Splunk in 2019.

Another startup applying AI to identify and resolve system outages is the Sequoia-backed Traversal. The emerging category is known as AI SRE.