Blacksmith raises $45M to aid AI code validation as agentic development grows

Blacksmith Software Inc. has secured $45 million in new funding for its continuous integration service, which streamlines code development with cloud-based testing. Peak XV Partners led the Series B round, with Y Combinator and GV also joining as investors. The company's valuation is now estimated at $550 million.

The increased funding comes as more developers adopt agentic artificial intelligence tools like Claude Code and Codex, which autonomously generate substantial amounts of code that require validation and testing post-generation. Blacksmith's recent launch of codesmith, a cloud coding agent, moves beyond merely building features and fixing bugs. It operates within the validation loop, diagnosing integration failures, automatically rectifying them, and healing submissions to the codebase.

This allows the entire developer team to continue working simultaneously, submit changes collaboratively, and then Blacksmith tests submissions as they arrive, commits new changes to the codebase if they pass, rejects them when they fail, and provides feedback on what went wrong when issues are identified. Co-founder and CEO Aditya "JP" Jayaprakash noted, "Writing code has gotten dramatically easier.

Validating it hasn’t." The company emphasized that every piece of code an agent writes still requires building, testing, and review before it can be shipped, and the validation layer will become increasingly crucial as more software is produced by agents.

The funding will primarily be allocated towards enhancing Blacksmith's compute infrastructure. Currently, the company manages hundreds of thousands of cores and plans to expand this by an order of magnitude in the coming months to accommodate anticipated demand. Blacksmith's service has seen a weekly growth rate of between 5% and 10% in the jobs running on its platform since the beginning of the year.

Over 6,000 companies now utilize the service, up from approximately 800 when the company announced its Series A last September, including notable companies such as Supabase Inc., Clerk Inc., Ashby Inc., and Mercury Systems Inc.