Sedai, the company behind the world’s first self-driving cloud™, has announced the successful close of its $20 million Series B funding round. The investment was led by AVP (Atlantic Vantage Point), with additional support from Norwest, Sierra Ventures, and Uncorrelated Ventures. The fresh capital will accelerate Sedai’s mission to revolutionize cloud operations through autonomous infrastructure management.
At the forefront of a new wave in AI agent–driven infrastructure automation, Sedai enables enterprises to move beyond passive dashboards and reactive alerts toward proactive, intelligent systems capable of autonomous action. By reimagining how cloud environments are managed—akin to how self-driving vehicles have disrupted transportation—Sedai eliminates the need for manual intervention with continuously operating AI agents.
To date, Sedai has executed over 25 million autonomous actions in live production environments, managing $3 billion in cloud spend across hundreds of thousands of services. This has translated into more than $5 million in annual savings for enterprise clients, reclaimed over 22,000 hours of engineering productivity, and, notably, delivered these results with zero incidents—demonstrating unmatched trust and safety in mission-critical operations.
“These aren’t projections. This is real AI, live in production,” said Suresh Mathew, CEO and Founder of Sedai. “Just like Waymo proved that self-driving cars are possible, Sedai proves that self-driving infrastructure is not only possible, it’s necessary.”
Sedai natively integrates with leading cloud platforms including AWS, Microsoft Azure, and Google Cloud. Its patented AI agents learn from each environment’s unique behavior to autonomously manage compute, storage, and traffic. Organizations can observe Sedai’s recommendations and gradually activate full automation as confidence grows.
Key features of the platform include:
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Smart Scaling: Leveraging deep reinforcement learning, Sedai dynamically adjusts resources, yielding up to 65% cost savings on Kubernetes clusters and 28% on virtual machine workloads.
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Self-Healing: Proactively detects and resolves performance degradation or outages before users are impacted—unlike traditional tools that rely on alerts and manual fixes.
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Continuous Optimization: Automates behind-the-scenes improvements to infrastructure, boosting operational productivity by 6X and enhancing performance by up to 30%.
The platform is powered by a proprietary Decision Engine, which coordinates multiple AI agents working toward goals such as reducing costs, improving availability, or minimizing latency. It adapts to evolving infrastructure and workload patterns using techniques such as anomaly detection, seasonality modeling, and causal inference. Sedai also holds several U.S. patents to ensure its unique capabilities are protected.
Trusted by global leaders in sectors such as cybersecurity, finance, pharmaceuticals, AI, and education, Sedai manages production environments and high-complexity machine learning workloads for some of the world’s most demanding enterprises.
“Sedai is a game-changing tool, both for our cloud strategy and for me personally,” said Matthew Duren, Vice President of Engineering at KnowBe4. “From a cost perspective, Sedai reduced our spend by up to 50% in production and by up to 87% in development, which meant it very quickly paid for itself. And from a personal perspective, Sedai helped me become a key strategic leader at KnowBe4. It frees up our team to focus on more valuable projects.”
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The latest funding will support the development of several pioneering capabilities, including self-tuning for LLM (large language model) applications, autonomous GPU optimization, and AI-powered orchestration for modern data platforms such as Databricks and Snowflake. Additionally, Sedai will scale its go-to-market efforts under the leadership of newly appointed Chief Revenue Officer, Vaneet Bhaskar.
“As cloud adoption increases, companies are now struggling to improve the availability and performance of their infrastructure, while also reducing cost,” said Manish Agarwal, General Partner at AVP. “What enterprises really need is a way to optimize their cloud environment, in real time. Our view is that AI agents are uniquely positioned to address this need and enable autonomous cloud management. Sedai fits squarely into that thesis, and we are honored to be part of the company.”
Sedai experienced a 7X revenue increase in 2024, fueled by successful large-scale deployments within several Fortune 500 enterprises and a 92% proof-of-concept to customer conversion rate. With this momentum, the company is now poised to accelerate its innovation roadmap and expand market reach.
“Sedai doesn’t just save money, it rewrites the physics of how engineering teams operate,” said Tim Guleri, Managing Partner at Sierra Ventures. “It’s the first AI system we’ve seen that turns cloud infrastructure into a competitive advantage, not a cost center.”
