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Blacksmith raises $45M to aid AI code validation as agentic development grows
Blacksmith Software Inc. today announced it has raised $45 million in new funding for its continuous integration service, which combines code development with cloud-based testing instead of on the developer’s computer.
Peak XV Partners led the Series B round, with existing investors Y Combinator and GV also participating. The funding brings the company to a valuation of $550 million.
The funding comes as more developers adopt agentic artificial intelligence tools such as Claude Code and Codex that automatically produce significant amounts of code that require validation and testing after the fact.
The company recently launched a service called codesmith, a cloud coding agent that developers can delegate tasks to. It moves beyond building features and fixing bugs by working inside the validation loop and diagnosing integration failures, automatically fixing them and healing submissions to the codebase.
The entire developer team can continue working on code at the same time, submit their changes collaboratively, and then Blacksmith tests submissions as they come in, commits new changes to the codebase if they pass, rejects them when they fail and sends back notes on what went wrong when issues are found.
“Writing code has gotten dramatically easier. Validating it hasn’t,” said co-founder and Chief Executive Aditya “JP” Jayaprakash. “Every piece of code an agent writes still has to be built, tested and reviewed before it can ship. That validation layer is going to become increasingly important as more software is written by agents.”
The company said that the funding will go into compute infrastructure. Blacksmith currently manages hundreds of thousands of cores and plans to grow that by an order of magnitude in the coming months to handle expected demand.
Blacksmith also said jobs running on its service have grown between 5% and 10% week over week since the beginning of the year. More than 6,000 companies now use the service, including Supabase Inc., Clerk Inc., Ashby Inc. and Mercury Systems Inc., up from about 800 when the company announced its Series A last September.
