Why We Invested in Sedai: Pioneering the Self-Driving Cloud
AVP is excited to announce that we have led Sedai’s $20M Series B round, joined by Norwest, Sierra and Uncorrelated Ventures.
Picture this: your company is scaling rapidly in the cloud. Costs are climbing – anywhere from hundreds of thousands to tens of millions annually – and you’re left wondering what’s driving the variability. You ask engineering teams to tag environments to trace usage, and ask DevOps teams to manually optimize thousands of services, all without disrupting application speed or uptime. You’re searching for a solution that can balance performance, availability, and cost without pulling engineers into the weeds every day.
We’ve spent the past few years meeting with companies trying to solve this exact challenge: from FinOps tools that offer spend visibility, purchase solutions that cover unexpected overages, to recommendation engines that only scratch the surface of cloud optimization. Then we met Sedai.
From our first conversation with Suresh, Sedai’s co-founder, we were struck by his ambitious vision: a truly autonomous platform that optimizes compute, storage, data, and AI infrastructure without human intervention. With deep experience running platform teams at PayPal (which operates one of the largest microservices environments), co-founders Suresh and Benjamin knew firsthand the limitations of traditional infrastructure management. They set out to build something fundamentally different: a patented agent-based system that continuously learns and acts to optimize cost, performance, availability, and safety – in real time without the need for manual oversight.
We believe the future of cloud infrastructure isn’t monitored – it’s autonomous. Sedai represents a fundamental shift in the way that companies manage their cloud, from manual to self-driving.
Why We’re Investing:
1. Cloud costs are soaring—and complexity is compounding
As hybrid, multi-cloud, and containerized environments multiply, cloud complexity and sprawl continue to accelerate. With global cloud spend hitting $421B in 2024 and projected to surpass $1 trillion by 2029, managing tens of thousands of services through dashboards and scripts is no longer sustainable. Enterprises need intelligent systems that take action automatically—handling the tasks engineers don’t have time for and ensuring performance issues are resolved, even when no one’s on call.
2. Sedai executes autonomously, driven by reinforcement learning
Sedai’s AI agents mimic DevOps decision making through reinforcement learning: continuously mapping the environment, scaling compute resources, and resolving incidents in real time. The company’s multi-agent system includes specialized agents for safety, availability, cloud cost, performance, scheduling, and rollbacks—working together to optimize operations autonomously.
Its platform supports multi-cloud compute, storage, data, and Kubernetes, with multiple patents underpinning its technology. Unlike solutions that provide recommendations or simple automations, Sedai safely implements changes, saving significant engineering time.
3. Proven impact with leading enterprises
Sedai is already running in production at Capital One, Expedia, and Palo Alto Networks—delivering measurable results. Enterprises can adopt automation at their own pace, starting with Data Pilot and Copilot modes before transitioning to full Autopilot. Notably, Sedai’s platform has never caused a production incident.
The outcomes speak for themselves: 15–50% cloud cost savings and ROI in just 4–6 months. Teams see faster application performance, better uptime, and reduced toil for SREs and developers alike.
Sedai is building something exceptional. The combination of strong technical leadership, traction with enterprise leaders, and a strong vision for the future of cloud infrastructure made this a clear decision for us. We at AVP are thrilled to support Suresh, Benjamin, and the Sedai team as they redefine how cloud is managed.
