Microsoft’s M12 Doubles Down on NeuBird with $22.5M Seed Extension

The Rise of AI-Driven Site Reliability Engineering

Founded in late 2023 by cloud technology veterans Gou Rao and Vinod Jayaraman, NeuBird is tackling one of IT’s most pressing challenges: the growing complexity of modern infrastructure and the shortage of skilled site reliability engineers (SREs). The startup’s AI-powered solution comes at a critical time for enterprises struggling with system reliability.

“The modern IT stack has become impossibly complex,” explains Rao, NeuBird’s CEO. “With constant technological evolution and high SRE turnover, organizations need intelligent automation to maintain system health.”

Hawkeye: The AI SRE Changing IT Operations

NeuBird’s flagship product, Hawkeye, represents a breakthrough in AI-driven operations:

• Continuous Monitoring: Scans systems ²⁴⁄₇ for alerts and alarms
• Intelligent Troubleshooting: Uses LLM reasoning to diagnose issues across custom systems
• Privacy-First Approach: Operates in read-only mode without storing sensitive data
• Human Escalation: Only involves engineers when truly necessary

“Hawkeye doesn’t need access to application data or transactional records,” Rao emphasizes. “We focus solely on system health indicators like error logs and CPU performance.”

Strategic Funding and Market Traction

Just months after raising a \(22 million seed round at a \)100 million valuation, NeuBird attracted additional investment from Microsoft’s M12 venture fund. The $22.5 million seed extension also saw participation from existing investors Mayfield and new backers Stepstone Group and Prosperity7 Ventures.

Key growth indicators:

• Enterprise Adoption: Customers span automotive, finance, pharma, and startups
• Production Deployments: Multiple clients have moved beyond pilot phase
• Azure Synergy: Natural alignment with Microsoft’s cloud platform

The Competitive Landscape

While NeuBird has gained early momentum, the AI-powered SRE space is becoming increasingly crowded:

• Y Combinator has backed three similar startups in 2024 alone
• Established players like Moogsoft offer automated incident response
• The broader trend of AI “copilots” is transforming DevOps functions

What’s Next for NeuBird?

With this latest funding, NeuBird plans to:

1. Accelerate product development
2. Expand its customer base
3. Position for a larger Series A round

As Mayfield’s managing partner describes it, AI “teammates” like Hawkeye represent the future of IT operations. With strong investor confidence and proven technology, NeuBird is well-positioned to lead this transformation.

Editor’s Note: Valuation data for the initial seed round comes from PitchBook.

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