Traversal

AI · DevOps · Enterprise Software

Milestone

Traversal raises $120M Series B at $1B valuation for AI SRE agents

Downtime now costs enterprises up to $600 billion a year as AI-generated code floods production systems faster than teams can monitor it.

• Traversal raised $120 million in a Series B co-led by Kleiner Perkins, Redpoint Ventures, and Khosla Ventures, valuing the company at $1 billion.
• Traversal builds AI agents for site reliability engineering, using causal machine learning to diagnose and fix production outages for enterprises like Nubank, Harvey, DigitalOcean, and PepsiCo.
• The round is roughly 2.5x the $48 million combined seed and Series A Traversal raised when it emerged from stealth in June 2025, bringing total funding to $173 million.
• Traversal reports revenue grew ninefold year-to-date and usage nearly 100-fold, with over 71,400 incident investigations run in a single quarter.
• A 2026 Splunk and Oxford Economics report found downtime costs rose 50% in two years as engineering teams write 180% more code, much of it AI-generated.
• Gartner projects 85% of enterprises will adopt AI SRE tooling by 2029, up from under 5% in 2025, as Traversal aims to extend its agents across the full software development lifecycle.
• The raise reflects a shift in investor appetite toward AI that performs real operational work, like keeping production systems running, rather than just generating code or conversation.