Sedai, a self-driving cloud, announced it has raised $20 million in Series B funding to bring autonomous operations to cloud infrastructure. The round was led by AVP (Atlantic Vantage Point), with participation from Norwest, Sierra Ventures, and Uncorrelated Ventures.
Sedai is transforming a new category of AI agent–driven infrastructure automation, as enterprises move beyond dashboards and alerts to systems that act autonomously in production. As the first self-driving cloud, Sedai marks a shift in how infrastructure is managed. Just as autonomous vehicles are replacing human drivers with intelligent systems trained on real-world data, Sedai replaces manual operations with AI agents that take safe and continuous action.
Momentum: Sedai has already executed over 25 million autonomous actions in production, managing $3 billion in cloud spend across hundreds of thousands of cloud services. The result is more than $5 million in annual savings for enterprise customers, over 22,000 hours of engineering time reclaimed, and zero incidents, establishing Sedai as the most trusted AI system for safely managing critical cloud infrastructure at scale.
Sedai connects directly with AWS, Microsoft Azure, and Google Cloud. And its patented AI agents learn each environment’s behavior and autonomously manage compute, storage, and traffic in real time. Customers can start by observing Sedai’s decisions and then gradually enable full automation as trust builds.
The core capabilities include:
1.) Smart Scaling – Utilizes deep reinforcement learning to allocate resources dynamically. And customers have seen up to 65% cost reduction on Kubernetes clusters and 28% on VM workloads through precise scaling.
2.) Self-Healing – Detects and resolves issues such as degradation and outages, before they impact users. Even though most tools depend on alerts or manual response, Sedai acts instantly to fix problems in production.
3.) Continuous Optimization – Makes continuous optimizations to infrastructure behind the scenes. Customers report 6X increases in operations productivity and 30% improvements in performance.
At the center of Sedai’s platform is its Decision Engine, which orchestrates multiple AI agents, each focused on different goals, such as cost, availability, or latency. And the system adapts to changes in topology and traffic using a combination of seasonality modeling, anomaly detection, and causal inference. Sedai holds a portfolio of U.S. patents that protect its ability to take action safely in the cloud.
How the funding will be used: With the funding round, Sedai will expand its platform and introduce several first-of-its-kind capabilities, including self-tuning for LLM-based applications, autonomous GPU optimization, and AI-powered orchestration for platforms such as Databricks and Snowflake. The company will also rapidly scale its go-to-market team, driven by new Chief Revenue Officer Vaneet Bhaskar.
Sedai grew revenue 7 times in 2024, fueled by large-scale deployments across multiple Fortune 500 firms and a 92% POC-to-customer conversion rate. With this funding round, the company is accelerating product innovation and expanding its go-to-market strategy.
KEY QUOTES:
“These aren’t projections. This is real AI, live in production. Just like Waymo proved that self-driving cars are possible, Sedai proves that self-driving infrastructure is not only possible, it’s necessary.”
Suresh Mathew, CEO and Founder of Sedai
“Sedai is a game-changing tool, both for our cloud strategy and for me personally. 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.”
Matthew Duren, Vice President of Engineering at KnowBe4
“As cloud adoption increases, companies are now struggling to improve the availability and performance of their infrastructure, while also reducing cost. 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.”
Manish Agarwal, General Partner at AVP
“Sedai doesn’t just save money, it rewrites the physics of how engineering teams operate. It’s the first AI system we’ve seen that turns cloud infrastructure into a competitive advantage, not a cost center.”
Tim Guleri, Managing Partner at Sierra Ventures
