DeitiveAI, a startup that uses AI to find and fix software bugs, has agreed to be sold to enterprise software company Elastic for up to $85 million, according to people familiar with the deal.
Founded in 2023, Deitive came out of stealth last November when it announced a $7.5 million seed round led by CRV with participation from Databricks Ventures, Thomvest Ventures, and PrimeSet. The investment values the startup at $33 million, according to PitchBook.
Elastic and Detive did not respond to multiple requests for comment. TechCrunch will update this article once both companies respond.
The sale marks a quick exit for Deitive, which operates in the fast-growing sector known as AI Site Reliability Engineering (AI SRE). Building AI-based SRE tools has become an important area due to the massive influx of code written with AI. Replacing manual debugging with AI allows human SREs to shift their focus from continuously troubleshooting outages and other issues to spending more time supporting product development.
The acquisition reflects a broader trend of established technology companies seeking to acquire AI-based startups to integrate agent technology into their existing product lines, sources told TechCrunch.
Elastic, which went public in 2018, is best known for Elasticsearch, a search and analytics engine that helps organizations store, search, analyze, and monitor large amounts of data in near real-time.
The company’s observability software, which is essentially a tool that allows engineers to monitor software systems and detect security threats, will benefit from leveraging Deitive’s technology. According to sources, integrating Deitive’s AI technology into Elastic will enhance its observability platform by providing customers with tools to automatically monitor performance and resolve system errors in real time.
Detive was co-founded by Rakesh Kothari, previously VP of Engineering at Lightspeed-backed business analytics startup ThoughtSpot, and Sameer Agarwal, who previously worked at Apache Software Foundation and Meta. Agrawal was one of the founding engineers at Databricks.
Deductive’s annual recurring revenue (ARR) has reached about $1 million, according to sources, but the startup’s growth has lagged behind that of Resolve AI, one of the early winners in the space. Two-year-old Resolve was co-founded by former Splunk executives Spiros Xanthos and Mayank Agarwal. The Greylock and Lightspeed-backed startup was last valued at $1.5 billion when it invested $40 million in its Series A expansion in April.
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