Enterprise software company Elastic has agreed to acquire DeductiveAI, a startup specializing in AI-powered bug resolution for software, for up to $85 million. DeductiveAI, founded in 2023 and recently valued at $33 million after a $7.5 million seed round led by CRV, operates in the rapidly expanding field of AI site reliability engineering (AI SRE). This acquisition aligns with a trend of established tech companies acquiring AI-native startups to integrate advanced AI capabilities into their existing products. Elastic, known for its Elasticsearch search and analytics engine, aims to enhance its observability platform by incorporating DeductiveAI's technology to enable real-time performance monitoring and automated system failure resolution. DeductiveAI co-founders include Rakesh Kothari and Sameer Agarwal.