Traversal Raises $120M, Hits $1B Valuation

Traversal Inc., a startup building AI agents to automate site reliability engineering, has raised $120 million in a round led by Kleiner Perkins, Redpoint Ventures, and Khosla Ventures, valuing the company at $1 billion. The funding addresses a growing crisis: AI-generated code has increased developer output by 180%, while enterprise downtime costs have risen over 50% to $600 billion annually. Traversal's AI diagnoses and remediates IT infrastructure problems using causal machine learning, far outperforming general-purpose models on SRE tasks. Revenue grew nine-fold in the past year, with customers including PepsiCo, DigitalOcean, and Nubank.