Traversal has raised $120 million in a Series B round at a $1 billion valuation to expand its AI site reliability engineering platform for large enterprises. Kleiner Perkins, Redpoint Ventures and Khosla Ventures co-led the round, which brings the New York company’s total funding to $173 million.
Sequoia Capital, Battery Ventures and Amex Ventures also took part. Traversal said Kleiner Perkins and Sequoia increased earlier stakes, a sign both firms wanted a larger position as the company moves from diagnosing outages toward more autonomous production work.
The funding round
Traversal announced the round on November 3, 2026. The company emerged from stealth in June 2025 with $48 million in seed and Series A funding, followed by a strategic investment from Amex Ventures in December 2025.
The new capital will fund hiring across research, engineering and go-to-market roles. It will also support work toward self-driving production, where software systems detect problems, understand causes, take corrective action and check that the fix worked.
What Traversal builds
Traversal builds an AI site reliability engineer, or AI SRE, that investigates production incidents for engineering teams. It diagnoses failures, triages alerts and helps prevent repeat incidents, so human engineers spend less time firefighting and more time building software.
Its Production World Model turns telemetry, code, deployment history and team knowledge into a continuously updated representation of a production system. Its Causal Search Engine then tests thousands of hypotheses in parallel to find an evidence-backed root cause rather than a plausible correlation.
Traversal introduced both systems in March 2026 after nearly two years of research. It has since added Traversal Workers, proactive agents that start work when an anomaly appears, and a connection that feeds production insight back into coding tools.
Anish Agarwal, co-founder and chief executive of Traversal, said reliability work carries unusually high stakes because every software environment is different.
Site reliability engineering is one of the hardest problems in applied AI because every company’s software environment is different, and with downtime costing companies as much as $600 billion a year, the stakes are enormous.
Why the round matters
Traversal points to a gap created by AI coding tools. Its announcement cites a survey finding 42 percent of developers now use AI to write most of their code, while 52 percent spend more time debugging that code once it reaches production.
The company also reports rapid growth this year, with annual recurring revenue up ninefold and product usage up nearly 100-fold. Customers ran more than 150,000 investigations last quarter, and monthly investigations rose from 513 to nearly 73,000 during 2026, according to Traversal.
Its named customers include Nubank, Harvey, PepsiCo and DigitalOcean. Traversal says its system is also used inside Fortune 100 companies, and it points to a benchmark built with Cornell Tech and Columbia University to show why general models struggle with incident diagnosis.
On that benchmark, called ORCA-bench, the best of five frontier agents reached only 25.3 percent accuracy on medium difficulty root cause tasks, falling to 10 percent when incident reports were vague. Traversal says the test covered 1,079 root cause tasks.
What comes next
Traversal plans to extend its platform across the software development lifecycle, from writing code to keeping it running. The goal is production software that can detect issues, act on them and prevent similar failures, rather than waiting for an engineer to start an investigation.
That ambition will be tested by how far customers trust autonomous agents in live systems. Traversal deploys read-only by default, which leaves humans in control of final decisions, and its next step is to prove that trust can extend to more automated remediation.
