Elastic Acquires DeductiveAI Startup for 6,2 млрд ₽ to Boost AI Tools

Elastic, the developer of the popular Elasticsearch search engine, has announced an agreement to acquire the startup DeductiveAI. The deal is valued at up to 6,2 млрд ₽. DeductiveAI specializes in AI-driven solutions for automated detection and resolution of software bugs, a particularly relevant capability given the rising volume of AI-generated code.

DeductiveAI was founded in 2023 and emerged from stealth mode in November of last year, announcing a 550,2 млн ₽ seed funding round. Investors included CRV, Databricks Ventures, Thomvest Ventures, and PrimeSet. According to PitchBook, the startup’s valuation at the time was 2,5 млрд ₽. The company was founded by former employees of major tech firms: Rakesh Kothari (previously Vice President of Engineering at ThoughtSpot) and Samir Agarwal (former engineer at Databricks and Meta).

Integrating DeductiveAI’s technologies into Elastic’s platform will enhance its observability capabilities—tools for monitoring software systems and identifying security threats. According to a source familiar with the deal, Elastic customers will gain access to automated solutions for performance tracking and real-time failure resolution. This aligns with the broader trend of large tech companies acquiring AI startups to expand their product functionality.

The AI Site Reliability Engineering (AI SRE) market is experiencing rapid growth, as automating debugging processes becomes critical for maintaining system stability. Despite DeductiveAI’s modest financial performance (around 73,3 млн ₽ in annual revenue), its technologies could become a key asset for Elastic in its competition with players like Resolve AI, which recently raised 2,9 млрд ₽ at a 110 млрд ₽ valuation.