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.