Blacksmith raises $45 million for AI code validation tools

AI code-testing startup Blacksmith Software Inc. has raised $45 million in a Series B funding round led by Peak XV Partners, boosting its valuation to $550 million. The funding comes amid a surge in AI-generated code from tools like Claude Code and Codex, which has created a massive bottleneck in code validation. Blacksmith plans to scale its compute infrastructure and expand its Codesmith AI coding agent to help its growing customer base of over 5,000 companies test and merge software faster.

Blacksmith Series B funding round

• ▪Blacksmith Software Inc. raised $45 million in a Series B funding round led by Peak XV Partners, with participation from GV and Y Combinator.
• ▪The Series B funding round brought the total funding raised by Blacksmith Software Inc. to $58.5 million since the startup's founding in 2024.
• ▪The Series B funding round valued Blacksmith Software Inc. at $550 million, up from a $60 million valuation during its Series A round less than a year prior.
• ▪Blacksmith Software Inc. plans to allocate the $45 million in new funding toward expanding its compute infrastructure, including growing its managed cores by an order of magnitude.

AI code validation bottleneck

• ▪The adoption of agentic artificial intelligence tools like Claude Code and Codex has dramatically increased the volume of generated code, making code validation a major bottleneck for software teams.
• ▪Blacksmith Software Inc. co-founder and Chief Executive Officer Aditya Jayaprakash stated that while writing code has become easier due to AI, validating, building, and reviewing code remains a critical bottleneck.

Codesmith cloud coding agent

• ▪Blacksmith Software Inc. launched Codesmith, a cloud-based AI coding agent designed to diagnose integration failures, automatically fix failed code checks, and heal submissions to the codebase.
• ▪The Codesmith platform allows developer teams to collaboratively submit code changes, which Blacksmith Software Inc. then tests, commits if they pass, or rejects with feedback if they fail.

Customer growth metrics

• ▪Blacksmith Software Inc. reported that jobs running on its continuous integration service have grown between 5% and 10% week-over-week since the beginning of 2026.
• ▪Blacksmith Software Inc. expanded its customer base to over 5,000 companies according to TechCrunch, or over 6,000 according to SiliconANGLE, including clients such as Supabase, Clerk, Ashby, and Mercury.
• ▪Blacksmith Software Inc. reached an annualized revenue run rate of $10 million with 10 employees, subsequently growing its workforce to approximately 30 employees and increasing revenue to tens of millions of dollars.

Continuous integration market competition

• ▪Blacksmith Software Inc. operates in a highly competitive continuous integration market, competing against GitHub Actions, Cursor Automations, and AI code-testing services from Amazon Web Services, Microsoft Azure, and Google Cloud.
• ▪Blacksmith Software Inc. co-founder Aditya Jayaprakash stated that the startup competes in the continuous integration market by focusing on testing speed and affordability.

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